Asked by Vishaldeep Singh on Jun 28, 2024
Verified
Raw materials that are tangible components of the finished product and can be separately and readily traced through the manufacturing process are called:
A) Raw materials sold.
B) Chargeable materials.
C) Work in process.
D) Indirect materials.
E) Direct materials.
Direct Materials
The raw materials that are directly traceable to the production of goods.
Manufacturing Process
The sequence of operations involved in transforming raw materials into finished products.
Tangible Components
These are the physical assets of a business or product which can be seen, touched, and measured.
- Identify the variances between costs associated with direct materials and those linked to indirect materials.
Verified Answer
MA
Muhammad ArshanJun 28, 2024
Final Answer :
E
Explanation :
Direct materials are the tangible components of the finished product that can be separately and readily traced through the manufacturing process. They are directly involved in the production process and become part of the finished product. Examples include raw materials such as wood, steel, and plastic that are used to build furniture, cars, and electronic devices.
Learning Objectives
- Identify the variances between costs associated with direct materials and those linked to indirect materials.