Question

McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs,

a) Indirect materials
b) Variable costs
c) Prime costs
d) Conversion costs

Answer 1

McCullough Hospital uses a job-order costing system and its direct materials include pharmaceutical drugs.

Step-by-step explanation:

A job-order costing system is used by McCullough Hospital to assign costs to its patients. The direct materials used in the system would include a variety of items such as pharmaceutical drugs. These materials are considered to be indirect materials.