Question

21. Cost of grease and oil is
O Direct materials
Indirect materials
O Packing cost
O
Indirect labour​

Answer 1

Correct Answer:

Indirect materials

Explanation:

• Indirect materials are those which are not directly related to the production of the goods being produced in the manufacturing factory.
• Grease and oil are those items which are used for the smooth functioning of the machinery without any disturbance in the working of the machines for the production of the products.
• Direct materials are those which are used in the making of the products, such as raw materials, etc.
• Packing cost is the cost of packing the products in a box made of cardboard or in a plastic container.

Hence, the final answer will be Indirect materials.

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Answer 2

Answer:

The correct option is B) Indirect materials.

Explanation:

Raw material can be classified as Direct material and indirect material. Direct material are those which is the reference to base material to produce the unit. The price of auxiliary materials used during the production process is known as indirect material. It is impossible to identify indirect substance.

• Materials used in the production process but not directly linked to the final product are referred to as indirect materials. For instance, cleaning supplies, glue, oil, tape, etc.
• Grease and oil are those substances that are utilised to ensure that machinery operates without interruption during the creation of goods.

Hence , Cost of oil and greese is Indirect material.

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