Respuesta :
True, because when setting the direct material price standard, management should include costs such as receiving and storing the materials.
What exactly does direct material cost mean?
Direct material costs can be immediately identified with the unit of production. Glass, for example, is a direct material cost in the making of light bulbs. The fundamental component in the manufacture of products or goods was material. These materials are frequently divided into two categories. These are divided into two categories: direct and indirect materials. Direct materials are also known as productive materials, raw materials, raw stock, stores, and unclassified goods.
The buying department's best estimate of the cost of raw materials, plus a figure for ancillary costs such as receiving, storing, and handling, should be the basis for the direct materials pricing standard. The direct materials quantity criteria should take into account both quality and quantity needs, as well as inevitable waste and regular deterioration. Thus, it is true.
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