All of the materials that go into creating manufactured goods are called “Raw Materials.” Raw materials appear in two tastes: Direct Materials and Indirect Materials. Direct materials are the raw materials that develop into component of the manufactured goods. For example, bricks, shingles, and bath tubs would be the straight resources when building a house. Paper would be a direct material when making grocery bags. Seems easy, but there is a catch.
Standard Costing System Discussion Questions and Answers: Questions: (a) Define standard costs. (b) Name some advantages of standard cost system. See answer A team of management consultants and company executives concluded that a standard cost installation was desirable vehicle for accomplishing the objectives of
Need for Materials Control: One of the first step in the installation of cost and management accounting system is planning the proper control of materials and supplies from the time orders are placed with supplier until they have been consumed in the plant and