Question

A manufacturing process requires small amounts of glue. The glue used in the process is classified as a/an ___________.

• A. Prime cost
• B. Indirect material
• C. Direct material
• D. Miscellaneous expense

Answer 1

The correct option is B Indirect material

Raw material can be classified as Direct material and indirect material. Direct material are those which is the base material to produce the unit. Indirect material is the cost of ancillary material required during the manufacturing process.