Direct Materials: Key Cost Element in Production

Answered using GPT-4o mini by AI Answer Generator

Question:

Which element of cost is associated with the direct production of goods? Question 1Answer a. Direct labor b. Direct materials c. Overhead costs d. Administrative costs

Answer:

The element of cost that is associated with the direct production of goods is:

b. Direct materials

Direct materials are the raw materials that are directly used in the production of goods. Direct labor (option a) is also associated with production but refers to the labor costs directly tied to the manufacturing process. Overhead costs (option c) and administrative costs (option d) are not directly tied to the production of goods.