alleryStart learning →Which item is a direct material for a furniture maker?
AMachine lubricant oil
BFactory cleaning gear
CWood in the furniture
DOffice stationery pads
Answer & Solution
Correct answer: C. Wood in the furniture
Wood is easily identified in the finished furniture, so it is a direct material.
Keep practising Cost Accounting
Browse all Cost Accounting questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Factory property taxes are categorised as which type of overhead?Cost accounting aims to compute cost, facilitate cost control and what?IFRS are issued by which body?Total assets are 500 and liabilities 320. What is equity?Opening cash 20, inflows 90, outflows 60. What is closing cash?Opening retained earnings 40,000, net income 25,000, dividends 10,000. Closing?Throughput accounting includes which costs in cost of goods sold?Across a business's life, FIFO, average cost and LIFO change which item?