Which of the Following Is an Example of a Direct

question 111

Multiple Choice

Which of the following is an example of a direct materials cost?

• A) glue used to build furniture
• B) wood used to make furniture
• C) nails used to construct furniture
• D) screws used to manufacture furniture

---

Definitions:

Recession

A period of time during which overall gross domestic product (GDP) declines for two or more consecutive quarters.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power over time.

Environmental Scanning

The process of collecting, analyzing, and using information about trends, events, and relationships in an organization's external environment to assist in planning.

Firm's Control

The extent to which a business can influence or dictate its operational environment, including internal processes and external market conditions.