Question

Material used in the office such as printing and stationery material, brooms and dusters, etc are examples of indirect costs. Explain why?

Answer 1

Expenses incurred on products that cannot be directly charged to production are referred to as indirect costs. Indirect material is any material utilised for supplementary functions that cannot be easily assigned to particular physical units. Indirect materials include things like oil lubricants and cotton waste, printing and stationery supplies, nails, glue and polish used in furniture construction, and more. This kind of material could be utilised in the workplace, manufacturing, or the sales and distribution department. Therefore, examples of indirect costs include office supplies such as dusters, brooms, printing supplies, and stationery.