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Cotton used in manufacturing cloth is an examples of direct material. Explain Direct material and give examples of it.

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Question

Cotton used in manufacturing cloth is an examples of direct material. Explain Direct material and give examples of it.

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Solution

Direct material, sometimes referred to as process material, is any material that becomes an essential component of the final product and can be easily assigned to certain physical units of the final product. Examples of direct materials are crude oil used to make diesel, wood used to make furniture, sugarcane in a sugar mill, and raw cotton in a textile mill.

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Chapter 8: Fundamental Concepts of Cost - QUESTION BANK [Page 155]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 8 Fundamental Concepts of Cost
QUESTION BANK | Q 7. | Page 155
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