Direct materials are sometimes referred to as

Question

Quizplus · Accepted Answer

Direct materials are the raw materials used in the production of a product. They are materials that can be easily traced and associated with a specific product or unit of production. Therefore, option B, "Raw materials", is the correct answer. Option A, "Overhead", includes indirect costs that cannot be easily traced to a specific product or unit of production, such as rent and utilities. Option C, "Period costs", are general costs associated with running a business and are not related to production specifically. Option D, "None of these ans choices are correct", is incorrect as option B is the correct answer.

Direct Materials Are Sometimes Referred to as