In: Accounting
Which of the following is not an example of a direct materials cost?
A) tires on a bicycle
B) engine in a car
C) shelves on a bookcase
D) nails used to manufacture a desk
Answer : Nails used to Manufacture a desk
Wood is the Direct material used in the Manufacturing of a desk, Nails, gum and other Materials are the indirect Materials. Engine, Tires, and Shelves are the Direct Materils for the Concerned Product.