When Indirect Materials Are Issued to Production,the Raw Materials Inventory

question 124

True/False

When indirect materials are issued to production,the Raw Materials Inventory account is credited.

---

Definitions:

Input Decrease

A reduction in the amount, quality, or efficiency of any raw material, capital, or labor used in the production process.

Derived Demand

Demand for a factor of production or good that results from the demand for another related good or service.

Substitution Effect

The change in consumption patterns due to a shift in relative prices that makes one product more economically attractive than another.

Output Effect

The output effect refers to the impact changes in production volume have on a company's total costs and profitability.