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:

Auditory Signals

Sounds or noises that are detected by the ear and interpreted by the brain.

Thalamus

A structure in the brain that acts as a relay station for information between the sensory organs and the cerebral cortex.

Hypothalamus

A region of the brain responsible for hormone production and regulation of critical bodily functions like temperature and hunger.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, as well as instincts and mood control.