Which of the Following Are Indirect Materials

question 15

Multiple Choice

Which of the following are indirect materials? 

• A) Transport 
• B) Raw materials 
• C) Services 
• D) Components

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Definitions:

Supplier

An entity that provides goods or services to another entity, typically a part of the supply chain.

Product Costs

The costs directly associated with the production of goods, including direct labor, direct materials, and manufacturing overhead.

Inventoriable Costs

Costs that are initially recorded as inventory on the balance sheet and recognized as cost of goods sold only when the inventory is sold.

Conversion Cost

The combined costs of direct labor and manufacturing overhead, representing the expenses to convert raw materials into finished goods.