Which of the following should not be included in direct materials costs? Group of answer choices Incoming freight charges. Materials handling costs. Delivery charges on shipments to customers. Invoice costs of direct materials. Materials storage costs.

Question

Business

Starr

2 February, 22:42

Which of the following should not be included in direct materials costs? Group of answer choices Incoming freight charges. Materials handling costs. Delivery charges on shipments to customers. Invoice costs of direct materials. Materials storage costs.

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Answers (1)

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Lyons · Answer 1

Delivery charges on shipments to customers.

Explanation:

The direct materials cost include the costs of acquiring, managing, storing and preparing the materials used during the production process. Therefore, incoming freight charges, materials handling costs, invoice costs of direct materials and materials storage costs could all be included. On the other hand, delivery charges on shipments to customers are costs related to the finished product and not to the materials and should not be included in direct materials cost.

The answer is Delivery charges on shipments to customers.