Costs which are crucial parts of the finished product are called: Direct materials.
What is direct materials?
Direct materials can be defined as the materials that are used during the production of goods.
For a product to be manufactured or for a product to be turn into a finished products or goods materials has to be used and the cost of those materials that are part of the finished product is what is called direct material.
Inconclusion Costs which are crucial parts of the finished product are called: Direct materials.
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