If the cost of direct materials 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

Direct materials are typically considered part of factory overhead cost if they are a small portion of total production cost. This cost includes all indirect expenses associated with the production process, such as rent, utilities, and equipment maintenance.

If the Cost of Direct Materials Is a Small Portion