Materials used in production that are not traced to individual units are classified as:
ADamaged materials
BIndirect materials
CImported materials
DDirect materials
Answer & Solution
Correct answer: B. Indirect materials
1. Glue and cleaning supplies are typical.
2. They form part of overhead.
3. They are indirect materials.
_Source: OpenStax Principles of Managerial Accounting, Chapter 2, Building Blocks of Managerial Accounting._
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