Question

The cost of raw materials used in production is considered an indirect cost.

विकल्प

• True

• False

Answer 1

False

Explanation:

The cost of raw materials used in production is a direct cost, not an indirect cost, since it can be immediately, quickly, and reliably linked back to a specific final product. Raw materials are an integral, physical part of finished goods, making their consumption costs easy to calculate per unit of production.