What Are Direct And Indirect Material Example?


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From the perspective of a manufacturer, Direct Material is any object that will become part of the product that is sold to the end customer. Indirect Material is considered and object that is used in the creation of your end product but does not become part of the end product. For example an "air tool" used to assemble a car is indirect material. A "bearing" used to maintain a conveyor system is considered an indirect material. While a "gas pedal" that leaves the dealership with a car, for example, is direct material. Indirect Material can also be considered anything that is used to keep the facility that houses production operations indirect, toilet paper, brooms, paint brushes. I hope this helps. Let me know if there is anything I can do for you.

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