The cost of raw materials such as sheet steel is treated as:

Question

Quizplus · Accepted Answer

Raw materials such as sheet steel are considered an expense item and are assigned to the manufacturing process as part of the cost of goods sold. This cost is directly related to the production process and is expensed as the goods are produced. It is not a fixed cost as it will vary based on the amount of production. It is also not a capital item as it is not considered a long-term asset.

The Cost of Raw Materials Such as Sheet Steel Is