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Commerce · Q138

Costing

Graduate and Post Graduate · Commerce · question 138

Q138

Indirect materials can be apportioned on the basis of ________.

A.
direct material
Answer
B.
prime cost
C.
direct labour hour
D.
machine hour

Answer: Option A

Solution

Answer: Option A
Solution:
Indirect materials can be apportioned on the basis of direct material. Indirect materials are materials used in the production process, but which cannot be linked to a specific product or job.