ECONOMICS

Detailed explanation-1: -Indirect materials are goods that, while part of the overall manufacturing process, are not integrated into the final product. For example, disposable gloves, personal protective equipment, tape, etc., may be essential to a production line, but they are not part of the actual product created on that line.

Detailed explanation-2: -Example of Raw Materials Direct raw materials: timber, wood, cushions, padding for the chairs, cloth fabric to cover the chairs. Indirect raw materials: fittings, nails, wood glue, equipment for workers.

Detailed explanation-3: -Indirect material costs: Indirect material costs are cost not readily traceable to a specific product or service. The seasoning used for all the kinds of bread produced by a bakery is indirect material cost. This is so because it cannot be traced to the production of a kind of bread produced.

Detailed explanation-4: -Examples of indirect expenses are accounting, auditing, and legal fees, as well as business permits, office expenses, rent, supervisor salaries, telephone expense, and utilities.