An iIndirect material:
A) Is an overhead cost.
B) Is a product cost.
C) Does not need to May be accounted for using the perpetual a periodic method.
Reworded since the term periodic method is not used in chapter
D) All of these.
Reworded since the term periodic method is not used in chapter

Question

Quizplus · Accepted Answer

It is either not possible or not cost-effective to trace costs of indirect materials,indirect labor,utilities,rent,and depreciation directly to particular jobs.Companies normally record these costs (in the Manufacturing Overhead account)and allocate them to individual products using a predetermined overhead rate.As such,indirect materials are product costs.Unlike direct materials,which are accounting for using the perpetual method (that is,the amount used is determined for each job as the materials are placed into production),indirect materials are accounted for on the periodic method.That is,the amount used is determined by adding beginning inventory and the amount purchased and then subtracting the indirect materials on hand (that is,the ending inventory).

An IIndirect Material