Question

Different between direct material and indirect material with example

Answer 1

Answer:

Direct materials are those that are used directly in the production process and are reflected in the final product. For example, timber would be a direct material in the production of furniture. In this case, timber is the primary material and must be part of the final product. Further, the cost of direct materials can be accurately identified and allocated to the cost of production.

Indirect materials are those that are used in the production of the final product indirectly. They cannot be directly measured and conveniently charged to the cost of production. For example, in furniture production, wood, glue, and nails may be classified as indirect materials.