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Direct material is variable cost because to produce any unit of product direct material required which changes with change in production level.
Direct Materials
Beginning Direct Materials Add: Materials purchased during period Less: Materials Used during period Equals: Ending Direct Materials
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
The direct materials budget shows the quantity and cost of direct materials to be purchased. The budgeted cost of direct materials to be purchased is then computed by multiplying the rquired units of direct materials by the anticipated cost per unit. Inadequate inventories could result in a temporary shutdown of production.
One is indirect and one is direct!
Direct material is never be a period cost because it is required to manufacture units of products so it is product cost and it can only be a period cost when there is no production of goods but there is a material expenses which is not possible.
A license, a vehicle, and insurance.
Package material are indirect material cost because package materials are not utilized in manufacturing of units of products but required to package the finished goods so it is indirect material cost.
Yes, it is required for the Vehicle Identification Number (VIN) to be visible on your vehicle as it serves as a unique identifier for your vehicle and is used for registration and identification purposes.
prime cost = direct labour cost + direct material cost + direct expenses
Sum of direct materials and direct labor