Which of the following costs would be considered a direct material?
A) glue in the production of automobiles
B) labor used to finish product
C) depreciation on the corporation's office building
D) paper used in the production of books

Question

Quizplus · Accepted Answer

Direct materials are physical items that are used in the manufacturing of the final product. Paper used in the production of books is a direct material because it is an essential component of the finished product. Glue is also a direct material because it is used specifically in the manufacturing of automobiles to join different parts together. Labor used to finish the product is considered direct labor, not direct material. Depreciation on the corporation's office building is considered an indirect cost, not a direct material.

Which of the Following Costs Would Be Considered a Direct