Materials used in production are classified as "direct materials" if they are:

Question

Quizplus · Accepted Answer

Direct materials are those materials that are traceable to a specific product, such as raw materials used in the production process. They are directly involved in the production process and can be traced to specific units of finished goods. Controllability, cost classification as fixed or variable, or the significance of the materials do not determine whether a material is classified as direct or indirect.

Materials Used in Production Are Classified as "Direct Materials" If