Q107
An example of direct engineered cost is
A.
indirect material cost
B.
direct material cost
AnswerC.
direct labour cost
D.
indirect labour cost
Answer: Option B
Solution
Answer: Option B
Solution:
An example of direct engineered cost is direct material cost. Direct material cost is the cost of the raw materials and components used to create a product. The materials must be easily identifiable with the resulting product (otherwise they are considered to be joint costs).