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Direct material are those material which are easily identified, conveniently measured and directly charged to the cost of production. It is also part of the finished product. Example of direct materials are Timber in cases of furniture making, Leather in case of shoe making, cotton in case of shirt making etc.

Indirect Material are those materials which cannot be conveniently identified & allocated to the cost centre or cost unit. It does also not form part of the finished product. Example of indirect material are bottom in case of shirt making, Thread in case of shirt making, pin & paste in case of furniture making etc.

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5mo ago

Direct materials are raw materials that are directly used in the production process and can be easily traced to a specific product. Indirect materials are not directly used in production but are necessary for the business to operate, such as cleaning supplies or maintenance tools.

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Q: Difference between direct material and indirect material?
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