In which of the following categories do indirect materials belong? Product Cost Manufacturing Overhead Period Cost...
In which of the following categories do indirect materials
belong?
| Product Cost |
Manufacturing Overhead |
Period Cost |
|
|
|
|
Homework Answers
Option 3 - Yes Yes No
Indirect materials are materials used in the production process but which can not be linked to specific product or job. They are used as a part of production process. Example of indirect material are consumables, disposables, tape, oil etc. So they are part of product cost. They canbe included in manufacturing overhead and are allocated to the cost of goods sold and ending inventory.
Period cost is associated with time rather than product. It generally includes selling and administrative cost. So indorect material will not be part of period cost.
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In which of the following categories do indirect materials
belong?
Product
Cost
Manufacturing
Overhead
Period
Cost...
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