Raw Materials That Become Part of a Product and Are

question 221

True/False

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

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Definitions:

Indirectly Related

Refers to items or factors that have a secondary or less direct connection or relationship.

Facility-level Costs

Costs that are incurred to maintain and operate a physical plant or facility, not directly tied to any specific product or service.

Support Department Costs

Indirect costs incurred by units or departments that do not directly produce goods or services but support those who do, such as human resources or IT departments.

Product Costs

Costs that are directly associated with the production of goods, including materials, labor, and overhead.