Commerce · Q188

Costing

Graduate and Post Graduate · Commerce · question 188

Q188

Direct material is a ________.

A.

manufacturing cost

Answer

B.

administrative cost

C.

selling cost

D.

distribution cost

Answer: Option A

Solution

Answer: Option A

Solution:

Direct material is a manufacturing cost. Direct material cost is the cost of the raw materials and components used to create a product.

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