Indirect materials can be directly traced to the goods or services being produced.

Question

Quizplus · Accepted Answer

Indirect materials are materials used to support the production process but cannot be directly traced to a specific product or service. Examples include lubricants, cleaning supplies, and maintenance tools. Direct materials, on the other hand, can be specifically identified as materials used in the production of a specific product or service.

Indirect Materials Can Be Directly Traced to the Goods or Services