Westerhouse manufactures refrigerators Which of the followin

Westerhouse manufactures refrigerators. Which of the following items is most likely considered an indirect material cost for Westerhouse?

Glass shelves for the refrigerators

Refrigerator motors

Supplies used by the factory janitor

Gasoline costs for trucks used to deliver products to customers

Solution

Answer : Supplies used by the factory janitor

Indirect material cost is the cost which is not directly attributable to product. This is a part of production process, but not related to the specific product. This cost are those activities that benefit more than one product. It\'s impossible to find the cost for a specific product.