Which statement describes direct materials in a manufacturing setting? A) Direct materials are used to determine total manufacturing overhead. B) Direct materials are used to determine total inventoriable product costs. C) Direct materials cannot be separately and conveniently traced. D) Direct materials do not become part of the finished product.

Question

Alfredo

Business

26 February, 21:53

Which statement describes direct materials in a manufacturing setting? A) Direct materials are used to determine total manufacturing overhead. B) Direct materials are used to determine total inventoriable product costs. C) Direct materials cannot be separately and conveniently traced. D) Direct materials do not become part of the finished product.

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Answers (1)

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Ezra Fowler · Answer 1

B) Direct materials are used to determine total inventoriable product costs.

Explanation:

Product costs includes direct materials, direct labor & manufacturing overhead.

This makes Choice B a description of direct materials in a manufacturing setting. All other choices are false.

Their is a chance to use direct labor as a basis for manufacturing overhead but not direct materials.

Direct materials can be separately and conveniently traced.

And finally, as stated above, direct materials are part of the finished product.