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23 June, 10:54

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as part of factory overhead cost.

A. TrueB. False

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  1. 23 June, 14:01
    0
    A. True

    Explanation:

    The total product cost is comprised of raw material, wages, depreciation on equipment held on the manufacturing process

    In mathematically,

    = Raw materials bought and used + Factory worker's wages + Manufacturing equipment depreciation

    If the material cost is not an important portion of the total product cost, so this would be shown in the factory overhead cost which we called indirect cost
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