Both indirect materials and indirect labor are overhead costs.

Name: Both indirect materials and indirect labor are overhead costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both indirect materials and indirect labor are considered indirect costs because they are not directly tied to the production of a specific product or service, but rather support the overall production process. As such, they are typically classified as part of a company's overhead costs.

Both Indirect Materials and Indirect Labor Are Overhead Costs