If the cost of a direct material is a small portion of total production cost, it may be classified as part of
A) direct labor cost
B) selling and administrative costs
C) miscellaneous costs
D) factory overhead cost

Question

Quizplus · Accepted Answer

If the cost of a direct material is a small portion of total production cost, it may be classified as part of factory overhead cost. Factory overhead costs are indirect costs that are not directly attributable to specific units of production, but instead, they support the production process as a whole. Costs in this category are typically small in comparison to direct labor and direct material costs.

If the Cost of a Direct Material Is a Small