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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 :

ogorwyne

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

The correct option is A. Partially completed motor engines for a motorcycle plant

The following information should be considered:

  • Materials are used to manufacture any kind of product such as bolts, glue, lumber etc.
  • Motor engine is just a machine, it is not considered as a direct or indirect material.

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