Direct materials cost is a: I. Period Cost or II. Product Cost
A)Only I
B)Neither I nor II
C)Only II
D)Both I and II

Question

Quizplus · Accepted Answer

Direct materials cost is a Product Cost. Product Costs are the costs a company incurs to manufacture its products or provide its services, and they include the cost of direct materials, direct labor, and overhead. Direct materials costs are basic, tangible components that are included in the manufacturing process of a finished product.

Direct Materials Cost Is A: I