Multiple choice

Directions: Choose the correct option for the given question.

Cost of material that can be conveniently identified is called ____ cost.

  1. direct

  2. indirect

  3. variable

  4. fixed

  5. direct material
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Direct materials are those that can be easily and economically traced to a specific product or cost unit. Indirect materials are those that cannot be conveniently identified with a specific job.

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