Materials Must Have Which Two Qualities in Order to Be

question 169

Multiple Choice

Materials must have which two qualities in order to be classified as direct materials?

• A) They must be classified as both prime costs and conversion costs.
• B) They must be introduced into the process in both work-in-process inventories and finished goods inventories.
• C) They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
• D) They must be an integral part of the finished product and be a significant portion of the total product cost.

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Definitions:

NEPA

The National Environmental Policy Act, a U.S. law that mandates federal agencies to assess the environmental effects of their proposed actions prior to making decisions.

Environment

encompasses all external factors influencing an organism or community, including natural, social, and built contexts.

Federal Agencies

Organizations established by the federal government to implement specific legislation and oversee a particular area of interest or concern.

Nonattainment Area

A geographical area that does not meet federally established ambient air quality standards.