Question

Which one of the following is not considered as material costs? a. Partially completed motor engines for a motorcycle plant b. Bolts used in manufacturing the compressor of an engine c. Rivets for the wings of a new commercial jet aircraft d. Lumber used to build tables

Answer 1

Answer:

A. Partially completed motor engines for a motorcycle plant

Explanation:

Material cost is the cost of materials used to manufacture a product or provide a service. It is the cost of the raw materials and the components that are used to manufacture a product. These materials should be easily identifiable with the resulting product.

Partially completed motor engines for a motorcycle plant is not a material cost because it cannot be directly traced to a particular product