When materials and supplies are used in a production facility to assemble and finish a product that will be sold to customers, the usage of the materials and supplies is described as:
A) Cost incurrence
B) Locked-in cost
C) Opportunity cost
D) Designed-in cost

Question

Quizplus · Accepted Answer

Cost incurrence refers to the use or consumption of resources such as materials and supplies in the production process. The cost of these resources is incurred as they are used to create a product that can be sold to customers.

When Materials and Supplies Are Used in a Production Facility