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Are direct materials fixed costs?

Direct material is variable cost because to produce any unit of product direct material required which changes with change in production level.


Is freight in considered part of direct materials or overhead?

Direct Materials


How do you calculate the ending direct materials inventory?

Beginning Direct Materials Add: Materials purchased during period Less: Materials Used during period Equals: Ending Direct Materials


What is direct labor and 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 use of a direct materials budget?

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.


What is the difference of indirect materials and direct materials?

One is indirect and one is direct!


Is direct materials a period cost?

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.


What is required to drive a vehicle?

A license, a vehicle, and insurance.


Are packaging materials a direct material cost?

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.


Is it required for your VIN number to be visible on your vehicle?

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.


What is the sum of direct labor and direct materials called?

prime cost = direct labour cost + direct material cost + direct expenses


What is prime cost in cost accounting?

Sum of direct materials and direct labor