Hunnicutt Company is a construction company that builds greenhouses on special request.What is the proper classification of indirect material used?
Prime Conversion Variable

Question

Hunnicutt Company is a construction company that builds greenhouses on special request.What is the proper classification of indirect material used? Prime Conversion Variable

Quizplus · Accepted Answer

Indirect materials used in construction are classified as part of conversion costs because they are necessary for transforming direct materials into the finished product, but they are not directly traceable to specific jobs. They are also variable costs, as their usage can vary based on the size and complexity of each project.

Hunnicutt Company Is a Construction Company That Builds Greenhouses on Special