The cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

Name: The cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.
Brand: Quizplus
Rating: 4.9 (36 reviews)

Question

Quizplus · Accepted Answer

The cost of oil used to lubricate factory machinery and equipment is considered an indirect cost because it does not directly become part of the finished product and is instead used in the general operation of the factory.

The Cost of Oil Used to Lubricate Factory Machinery and Equipment