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:

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.

Money

Main job is to be a medium of exchange; also serves as a standard of value and a store of value.

Economic Villains

Individuals, organizations, or phenomena recognized for their destructive impact on economic stability, integrity, or growth.

Entrepreneurs

Individuals who create, organize, and manage a new business venture, taking on greater than normal financial risks in order to do so.