Ask Question
7 November, 13:21

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

A. TrueB. False

+2
Answers (1)
  1. 7 November, 13:56
    0
    A. True

    Explanation:

    The total product cost is comprised of raw material, wages, depreciation on equipment held on the manufacturing process

    In mathematically,

    = Raw materials bought and used + Factory worker's wages + Manufacturing equipment depreciation

    If the material cost is not an important portion of the total product cost, so this would be shown in the factory overhead cost which we called indirect cost
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers