Materials used in the production of a product best defines
A) indirect materials.
B) direct materials.
C) MRO materials.
D) production materials.

Question

Quizplus · Accepted Answer

Direct materials are the materials that are used in the production process and are directly incorporated into the finished product. Examples include raw materials, components, and assembly parts. Indirect materials are items that are used in the production process but are not directly incorporated into the finished product. MRO (maintenance, repair, and operations) materials are items used to maintain equipment and facilities but are not part of the production process. Production materials are not a commonly used term in accounting or manufacturing.

Materials Used in the Production of a Product Best Defines