Vidyalelo
Commerce · Q6

Costing

Graduate and Post Graduate · Commerce · question 6

Q6

Indirect material used in production is classified as ________.

A.
office overhead
B.
selling overhead
C.
distribution overhead
D.
factory overhead
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Indirect material used in production is classified as factory overhead. Indirect materials are materials used in the production process but are not directly traceable to the product.