Multiple choice

Which of the following is not included in direct material costs?

  1. Indirect Taxes

  2. Quantity Discounts

  3. Packing and Container Charges

  4. Direct Taxes

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Direct taxes are not included in cost of direct materials. As direct tax like income tax, is not paid on cost of materials and is paid on the earnings or income, it is not included in cost of direct materials.

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