Question

244. Thread in garments is an example of
(a) Direct materials
(b) Prime cost
(c) Variable cost
(d) Indirect materials

Answer 1

Answer:

direct material

Explanation:

hope it's helpful

Answer 2

The correct option is (a) Direct material cost.

Explanation:

• Direct material cost includes raw material cost and components used to make product.
• The materials must be clearly distinguishable from the finished product (otherwise they are considered to be joint costs).
• The direct material cost is one of the few variable expenses involved in the manufacturing process; as such, it is used to calculate throughput from manufacturing processes.
• Throughput is defined as sales minus any completely variable expenditures.
• Direct materials include the wood used to build a house, the steel in a vehicle, the circuit board in a radio, and the fabric used to create apparel.