An indirect material:
A) Is an overhead cost.
B) Is a product cost.
C) Does not need to be accounted for using the perpetual method.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Indirect materials are considered overhead costs because they are necessary for the production process but cannot be directly traced to a finished product. They are part of the product cost as they are included in manufacturing overhead, which is allocated to products. Indirect materials do not need to be tracked as meticulously as direct materials, meaning they don't require perpetual inventory tracking, making all the provided statements correct.

An Indirect Material