The assignment of direct and indirect materials to cost objects reduces

Question

Quizplus · Accepted Answer

Assigning direct and indirect materials to cost objects reduces the amount of raw materials inventory, as they are being allocated to specific products or processes. This helps to track and manage inventory levels more effectively, and also aids in determining the cost of goods sold. The assignment of materials does not have a direct impact on finished goods inventory, manufacturing overhead, or work in process inventory.

The Assignment of Direct and Indirect Materials to Cost Objects