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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Material cost
Sir factory building is a indirect material cost an i right sir
No.
The costs of running the factory (such as lighting and heating it) are indirect production costs (i.e. production overheads).
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?
Yes, that is OK.