Both direct materials and indirect materials are
A) raw materials.
B) manufacturing overhead.
C) merchandise inventory.
D) sold directly to customers by a manufacturing company.

Question

Quizplus · Accepted Answer

Direct materials and indirect materials are both types of raw materials used in the production process. Direct materials are those that are easily traced and associated with the final product, while indirect materials are those that are not easily traceable and are used in supporting production, such as tools, oils, and cleaning supplies. Neither of these types of materials are counted as merchandise inventory, nor are they sold directly to customers by a manufacturing company. While indirect materials are part of manufacturing overhead, it is not an accurate choice to say that direct materials are also part of manufacturing overhead.

Both Direct Materials and Indirect Materials Are