Indirect Material costs are nothing but the costs incurred by the company in manufacturing a product. Eg: Lubricants,grease,sand paper etc..
What Is InDirect Material Cost?
Indirect Labor cost
There are two types of costs of materials including the direct cost and the indirect cost. The direct material cost is the cost which is incurred by the company to develop the product. In other words, this cost is directly related with the core product of the company. On the other hand, the indirect material cost is the cost incurred by the company in other than core operations of the company. Example of a direct material cost is the cost of steel for making automobiles while indirect material cost is the cost of material that is not used in making automobile but used in other operations of the automobile plant.
