The difference between a supply and an indirect material is that
A)supplies are not necessary for production.
B)indirect materials are not physically part of the product.
C)supplies are not necessary for production and are not physically part of the product.
D)supplies are necessary for production and are not physically part of the product.

Question

Quizplus · Accepted Answer

Supplies are necessary for production, meaning that production cannot occur without them. Indirect materials, on the other hand, are not physically part of the product but are still necessary for production to take place. Therefore, supplies are both necessary for production and not physically part of the product, making option D the correct answer. Option A is incorrect because supplies are necessary for production. Option B is incorrect because indirect materials are not physically part of the product. Option C is incorrect because supplies are necessary for production.

The Difference Between a Supply and an Indirect Material Is