Expenditures for materials that go directly into the creation of a product or service are called ________ costs.
A)indirect labor
B)direct labor
C)maintenance
D)raw material
E)supportive supplies

Question

Quizplus · Accepted Answer

Raw materials are the materials that are used in the production of a product or service. These are directly used in the creation process and hence are considered as direct costs.

Expenditures for Materials That Go Directly into the Creation of a Product