Material which cannot be charged directly _____.
Direct material
indirect material
overheads
profit
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Answer:
indirect material
Explanation:
what said material cannot charger direct that means indirect material..
Answered by
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Material that cannot be charged directly is "Indirect material."
Items under the cost sheet:
- In the cost sheet, the cost of a product is allocated under various heads, like direct expenses under prime cost and for indirect cost, we allocate these costs as overheads in factory and office and administration expenses.
- Indirect material will be treated as overhead under the factory expenses because their per-unit value is not available. That's why these expenses are treated as indirect.
- We find the per-unit rate of these indirect materials by dividing the whole overhead by taking some base such as number of man-hours, number of units, percentage of direct wages, etc.
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