ECONOMICS

Detailed explanation-1: -Explanation: Material and supplies that cannot be traced conveniently are called indirect materials and all indirect costs are collectively termed overheads.

Detailed explanation-2: -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-3: -Direct materials are those materials that are used in the production of a product or service and become a part of the finished item. Indirect materials are those that support the production process, but are not incorporated into the final product.

Detailed explanation-4: -Indirect materials: Indirect materials are materials that are used in the production process but that are not directly traceable to the product. For example, glue, oil, tape, cleaning supplies, etc. are classified as indirect materials.

Detailed explanation-5: -There are three types of manufacturing costs, which are as follows: Direct Material: Direct materials are whose materials that become an integral part of the finished product and that can be physically and conveniently traced to the final product.