Indirect material used in production is classified as ________.
A. office overhead
B. selling overhead
C. distribution overhead
D. factory overhead
Answer: Option D
Solution(By Examveda Team)
Indirect material used in production is classified as factory overhead. Indirect materials are materials used in the production process but are not directly traceable to the product.Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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