Direct materials inventory costs would normally include ________.
A) the cost of materials in stock are part of the cost object (product) and can be traced to that cost object in an economically feasible way
B) the cost of goods partially worked on but not yet fully completed
C) the cost of goods fully completed but not yet sold
D) the cost of products in their original form intended to be sold without changing their basic form

Question

Quizplus · Accepted Answer

Direct materials inventory costs are the costs of raw materials that are used in the manufacturing process and can be traced to a specific product in an economically feasible way. This includes materials that are currently in stock and available for use in production. Options B and C refer to partially completed or fully completed products, respectively, and are not included in direct materials inventory costs. Option D refers to finished goods inventory costs.

Direct Materials Inventory Costs Would Normally Include ________