Which of the following should not be included in direct materials costs?
A) Materials handling costs.
B) Materials storage costs.
C) Incoming freight charges.
D) Invoice costs of direct materials.
E) Delivery charges on shipments to customers.

Question

Quizplus · Accepted Answer

Delivery charges on shipments to customers are not considered direct materials costs because they are related to the delivery of finished goods to customers, rather than the production of the goods themselves. Choices A, B, C, and D are all examples of costs that may be included in direct materials costs.

Which of the Following Should Not Be Included in Direct