The assignment of direct and indirect materials to cost objects reduces:

Question

Quizplus · Accepted Answer

When direct and indirect materials are assigned to cost objects, it reduces the amount of raw materials inventory as those materials are now allocated to specific cost objects. It does not affect finished goods inventory or work in process inventory. While indirect materials are part of manufacturing overhead, assigning them to cost objects does not reduce overall manufacturing overhead expenses.

The Assignment of Direct and Indirect Materials to Cost Objects