Hi Clifford,Please see the response to your question from my colleague, Bill Cordes. Please let us know if you have any additional questions.Thank you,MorganThank you for a great question concerning “CMA Pop Quiz” question 169. This is an opportunity to share an important concept concerning direct materials. Materials that are insignificant and relatively small in relation to the cost of all other materials used are treated as indirect costs and included in overhead. In the case of this question, the glue meets the definition of an indirect cost as it is a trivial cost in relation to the cost of the other materials used in the finished product.
Senior Director, Exam Development and Performance Analysis