What are the difference between Direct Material and Indirect Material?

The Distinction Between Direct and Indirect Material In Cost Accounting.

Direct Material:

  • Direct materials are those materials which are easily identifiable with the cost of production.
  • Direct materials can be conveniently measured with the cost of product.
  • Direct materials are part of the finished products.
  • Direct materials are part of the prime cost.

Indirect Material:

  • Indirect materials are those materials which can not be easily identified with the cost of production.
  • Indirect materials can not be easily measured in cost of production.
  • Indirect materials are part of the overheads.
  • Indirect materials are part of the factory cost.
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