Reference:
Charlie's Chocolate Factory manufactures chocolate bars and ships them directly to wholesalers and retailers across the country. The company has two product lines: milk chocolate bars and chocolate covered almonds. Classify the following company's expenses if the cost object is a single product line (either milk chocolate bars or chocolate covered almonds).
-Almonds used in the chocolate covered almonds.
A)Indirect product cost.
B)Indirect period cost.
C)Direct product cost.
D)Direct period cost.

Question

Quizplus · Accepted Answer

Almonds used in the chocolate covered almonds are a direct product cost as they are directly related to the production of the chocolate covered almonds product line.

Reference: Charlie's Chocolate Factory Manufactures Chocolate Bars and Ships Them Directly