Direct material costs do not include small items that are uneconomical to trace to products. Which of the following would not be included as a direct materials cost for a furniture manufacturer?

Question

Quizplus · Accepted Answer

Glue is typically considered an indirect material cost for a furniture manufacturer because it is a small item that is uneconomical to trace to specific products. It is used in small quantities across various products, making it difficult and not cost-effective to directly attribute its cost to a single item.

Direct Material Costs Do Not Include Small Items That Are