Langley Company is a construction company that builds houses on special request. What is the proper classification of indirect material used? $\underline{\text { Prime }}\quad\underline{\text {Conversion }} \quad\underline{ \text { Variable} }$
A) no no no
B) no yes yes
C) yes yes yes
D) yes no no

Question

Quizplus · Accepted Answer

Indirect materials are part of conversion costs as they are necessary for transforming raw materials into finished goods, and they are variable costs as they change with production levels. They are not prime costs, which include direct materials and direct labor.

Langley Company Is a Construction Company That Builds Houses on Special