Multiple choice

Directions: Choose the correct option for the given question.

The cost of components bought for manufacturing a motor car come under

  1. direct labour

  2. direct material

  3. indirect material

  4. indirect expense

  5. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Components that are bought and directly incorporated into the final product, like an engine for a car, are classified as direct materials.

Keep practicing — related questions