A chair manufacturer makes custom chairs using hand tools,wood,glue,and varnish.Which of the following statements is true?
A) The costs of wood and glue would be treated as direct costs.
B) Wood, glue, and varnish would all be direct materials.
C) Wood would be accounted for as a direct cost, and glue and varnish as indirect costs.
D) The concepts of direct and indirect costs are not applicable here.
Correct Answer:
Verified
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