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Material cost

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Material cost

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
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  • August 19, 2021 at 1:00 pm #632131
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    Sir factory building is a indirect material cost an i right sir

    August 19, 2021 at 3:24 pm #632166
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    No.

    The costs of running the factory (such as lighting and heating it) are indirect production costs (i.e. production overheads).

    August 19, 2021 at 6:27 pm #632240
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    But The cost of running the Machinery also could be ( production overheads )

    And the oils used for maintaining machines is indirect material

    Similarly sir
    The cost of running the factor building may also be production overhead cost like what sir just told

    But
    for example
    The cleaning detergents used for the factory maintenance is an indirect material cost as well

    So now am I right to tell that factory maintenance detergents is a indirect material cost?

    August 20, 2021 at 7:47 am #632296
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    Yes, that is OK.

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