Historically, expenditures for indirect materials and services have received the same level of management attention as have direct materials.

Question

Quizplus · Accepted Answer

Indirect materials and services historically received less management attention than direct materials. Direct materials were seen as more critical to the production process, so they were given priority in terms of management focus. This is starting to change as companies recognize the importance of optimizing their entire supply chain, including indirect materials and services.

Historically, Expenditures for Indirect Materials and Services Have Received the Same