In process cost accounting, materials are always classified as indirect if they are not physically incorporated into the final product.

Question

Quizplus · Accepted Answer

In process cost accounting, materials can be classified as indirect or direct based on their usage in the final product. Direct materials are physically incorporated into the final product, while indirect materials do not become part of the final product but are still necessary for production.

In Process Cost Accounting, Materials Are Always Classified as Indirect