QuestionAugust 5, 2025

Raw materials inventory should not include indirect materials. True or False True False

Raw materials inventory should not include indirect materials. True or False True False
Raw materials inventory should not include indirect materials.
True or False
True
False

Solution
4.7(242 votes)

Answer

True Explanation 1. Define Raw Materials Inventory Raw materials inventory includes all materials directly used in the production of goods. 2. Define Indirect Materials Indirect materials are not directly part of the finished product but support the production process. 3. Determine Inclusion Since indirect materials do not become part of the final product, they are not included in raw materials inventory.

Explanation

1. Define Raw Materials Inventory<br /> Raw materials inventory includes all materials directly used in the production of goods.<br /><br />2. Define Indirect Materials<br /> Indirect materials are not directly part of the finished product but support the production process.<br /><br />3. Determine Inclusion<br /> Since indirect materials do not become part of the final product, they are not included in raw materials inventory.
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