question 11 (5 points)\nhow are the costs of direct materials classified?\nchoice c\nchoice a\nchoice…
question 11 (5 points)\nhow are the costs of direct materials classified?\nchoice c\nchoice a\nchoice b\nchoice d
Answer
Brief Explanations:
- Manufacturing Cost: Direct materials are part of manufacturing costs as they are used in the production process.
- Prime Cost: Prime cost is the sum of direct materials and direct labor. So, direct materials are included in prime cost.
- Conversion Cost: Conversion cost is the sum of direct labor and manufacturing overhead. Direct materials are not part of conversion cost.
Answer:
D. Choice D