If the amount of indirect materials needed for production is deemed to be insignificant,it should not be included in the direct materials budget.

Question

Quizplus · Accepted Answer

Indirect materials, such as lubricants or cleaning supplies, are not directly used in the production of goods and are typically considered to be insignificant in terms of cost. Therefore, they should not be included in the direct materials budget, which relates specifically to the materials that are directly used in the production process.

If the Amount of Indirect Materials Needed for Production Is