Materials must have which two qualities in order to be classified as direct materials? a. they must be classified as both prime costs and conversion costs. b. they must be introduced into the process in both work-in-process inventories and finished goods inventories. c. they must be an integral part of the finished product and be a significant portion of the total product cost. d. they must be an integral part of the finished product, but can be an insignificant portion of the total product cost.

James is an employee in the widget inspection department of xyz systems, a government contractor. james was part of a 3-person inspection team that found a particular batch of widgets did not meet the exacting requirements of the u.s. government. in order to meet the tight deadline and avoid penalties under the contract, james' boss demanded that the batch of widgets be sent in fulfillment of the government contract. when james found out, he went to the vice president of the company and reported the situation. james was demoted by his boss, and no longer works on government projects. james has a: