If the Cost of Direct Materials Is a Small Portion

question 77

Multiple Choice

If the cost of direct materials is a small portion of total production cost, it may be classified as part of:

• A) direct labor cost
• B) selling and administrative costs
• C) miscellaneous costs
• D) factory overhead cost

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Definitions:

Deposit Value

The amount of money placed in an account or invested, which can earn interest over time.

Interest Rate

The fraction at which a lender charges interest to a borrower for the amount of money lent.

Investment Guaranteed

A financial product promising the return of the principal amount plus predetermined earnings, minimizing risk for the investor.

Investment Value

The worth of an asset or security at a specific point in time, taking into account factors such as market conditions and risk.