Which Statement Is True Concerning Direct Materials

question 11

Multiple Choice

Which statement is true concerning direct materials?

• A)are materials traceable to individual units produced.
• B)costs are almost always variable.
• C)costs are almost always fixed.
• D)"a" and "b"

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Definitions:

Bad Debts

Amounts owed to a company that are not expected to be collected, often recognized as an expense on the income statement.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Allowance Method

An accounting technique used to estimate and prepare for the amount of accounts receivable that may not be collected.

Contra Asset Account

An account on a company's balance sheet that reduces the value of a related account, used to account for items like depreciation, amortization, and allowances for doubtful accounts.