Indirect materials costs are included in manufacturing overhead.

Name: Indirect materials costs are included in manufacturing overhead.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Indirect materials such as lubricants, cleaning supplies, and small tools are considered part of manufacturing overhead. Manufacturing overhead refers to indirect production costs that cannot be easily traced to specific products such as factory rent, utilities, depreciation, and indirect labor costs.

Indirect Materials Costs Are Included in Manufacturing Overhead