The Difference Between a Supply and an Indirect Material Is

question 118

Multiple Choice

The difference between a supply and an indirect material is that

• A)supplies are not necessary for production.
• B)indirect materials are not physically part of the product.
• C)supplies are not necessary for production and are not physically part of the product.
• D)supplies are necessary for production and are not physically part of the product.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor costs.

Fiscal Year

A one-year period that companies use for accounting and financial reporting purposes, which may or may not align with the calendar year.

Product Cost

refers to the total expense incurred to manufacture a product or deliver a service, encompassing direct labor, materials, and overhead costs.

Drill Bits

Tools used for creating cylindrical holes, often seen in various sizes and made from different materials suitable for specific drilling needs.