what criteria for determining whether materials are direct or indirect?. course hero

What is the difference between direct and indirect materials?

The primary difference between direct and indirect materials is their traceability to the final product. The usage of direct materials specifically targets what's needed to create a given product or service, and this usage is explicitly tied to the final product.

What is the usage of direct materials?

The usage of direct materials specifically targets what's needed to create a given product or service, and this usage is explicitly tied to the final product.

What are direct materials and Bom?

Direct materials are part of the BOM, integrated in the final product both physically and from a cost standpoint. They directly add to the Cost of Goods Sold (COGS) for a product, and the consumption of direct materials is directly linear with how much product a company produces and sells.

How do you account for direct materials?

These materials are direct materials because they're reflected in the final product. In these examples, each company would account for those specific materials by including them in production costs. Accounting for direct materials is straightforward because they are easy to identify, calculate and allocate.

What are direct materials?

What is the difference between direct and indirect materials?

Why are indirect materials not used in production?

What is the manufacturing process?

What is favorable direct materials variance?

Why do companies order and use direct materials in larger quantities?

What is material yield variance?

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What is the difference between direct material and indirect material?

Direct Material: one that is easily identified, conveniently measured and directly charged on cost of product. Indirect Material: One that cannot be conveniently identified are classified as indirect material.These are generally charged againt cost center of production line. Thanks. Mohsin

What is direct and indirect material? - Quora

Answer (1 of 4): 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, cott...

direct material and indirect material | SAP Community

please explain the what is direct material and indirect material and its different between them

What are Direct Materials? - Definition | Meaning | Example

Definition: Direct materials are raw materials that are made into finished products. These are not materials that are used in the production process. Direct materials are goods that physically become the finished product at the end of the manufacturing process.

Direct materials definition — AccountingTools

Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

What are direct materials?

Direct materials are the materials used during production and are directly reflected in the final product. They include the raw materials, parts or sub-parts needed to produce a product. Since the cost of direct materials is quantifiable, they're easily and accurately allocated to individual production or batches and their production costs. Tracking and documenting the cost of these materials is important because they impact the cost of a product or service.

What is the difference between direct and indirect materials?

The primary difference between direct and indirect materials is their traceability to the final product. The usage of direct materials specifically targets what's needed to create a given product or service, and this usage is explicitly tied to the final product. Indirect materials aren't used as direct inputs in the production process because they aren't tied to the production of a specific product or service, even though they're still used during the process. Indirect materials primarily target the company's day-to-day operational and administrative needs.

Why are indirect materials not used in production?

Indirect materials aren't used as direct inputs in the production process because they aren't tied to the production of a specific product or service, even though they're still used during the process. Indirect materials primarily target the company's day-to-day operational and administrative needs. 2. Quantity of materials used in production.

What is the manufacturing process?

The manufacturing process for any product involves the use of direct and indirect materials, which contribute to production costs and profitability in different ways. Knowing the differences between direct and indirect materials can help you better understand their cost implications and help you determine profits and profit margins ...

What is favorable direct materials variance?

A favorable direct materials variance is when the price of materials or the quantity of materials used is lower than the expected price or quantity.

Why do companies order and use direct materials in larger quantities?

Companies typically order and use direct materials in larger quantities because they make up the primary component of a good or service. Comparatively, companies use insubstantial amounts of indirect materials, and these materials contribute to the operational needs of the company as a whole.

What is material yield variance?

Material yield variance: The difference between the amount of material the company uses during production and the amount it expects to use, multiplied by the budgeted cost of the materials

Most recent answer

Adding to what has said by the respected colleagues, may be the most important performance parameter that most indicative is it ability to emit light at certain level of excess electron and holes dn=dp. The direct band gap material radiation intensity will be much higher than than the indirect gap material.

Popular Answers (1)

May I join in! No one is suggesting to predict band gaps and their natures without calculations or experiments. That is not just "very difficult", but is impossible.

All Answers (15)

The top of the valence band is located at the gamma point, but it is not possible to say if the conduction band minimum is at the gamma point without a band structure calculation.

Similar questions and discussions

How can I determine whether a semiconductor is direct band gap or indirect band gap?

Most recent answer

Anup Pradhan Sakhya Tauc used an equation in 1968 to calculate the absorption edges (bandgaps) of amorphous Ge and Si from their absorption data.

All Answers (7)

In addition to reflection, absorption, transmission and scattering can be used. And take into account the conservation of energy.

Similar questions and discussions

How can I determine whether a semiconductor is direct band gap or indirect band gap?

What is direct material in shoe manufacturing?

In a shoe manufacturing company, each type of shoe manufactured requires a specific quantity of say leather or suede, specific number of premanufactured soles. These materials thus have a direct one-to-one relation with the product manufactured and thus qualify as direct materials.

What is direct material cost?

The cost of direct materials is directly allocated to the product manufactured without the need for any separate allocation basis or formula.

What is the use of resources in manufacturing?

Every manufacturing process involves the use of several resources specifically materials and labor. The consumption of resources must be measured, recorded and allocated to determine manufactured product costs.

What makes up a significant amount of the total product cost?

Direct materials typically make up a significant amount of the total product cost.

What are consumable resources?

One of these major consumable resources is materials which include all parts, components or any items which serve as raw materials or input materials in the manufacturing process. This article looks at meaning of and differences between two types of materials – direct materials and indirect materials.

Can indirect materials be directly identified?

Indirect materials cannot be directly identified with the production of a specific product i.e., they are used in the overall production process.

Which form of prime cost is recorded first?

Direct materials form part of prime cost and are recorded first in the cost sheet.

What is direct material?

Direct materials are part of the BOM, integrated in the final product both physically and from a cost standpoint. They directly add to the Cost of Goods Sold (COGS) for a product, and the consumption of direct materials is directly linear with how much product a company produces and sells.

What is direct material procurement?

Direct material procurement, on the other hand, is often much more specialized in nature, and often requires a more technical and deeper focus on the actual materials being purchased and the suppliers involved.

What is specific technical requirements?

Specific technical requirements — specific manufacturing capabilities required by the supplier, detailed technical specifications for the materials themselves, and technical know-how from the procurement team in order to intelligently manage these technical details.

What is detailed schedule requirement?

Detailed schedule requirements — evaluating and tracking component lead times, delivery dates, and other things critical to a company's own production schedule.

Is indirect material rolled up into COGS?

Indirect materials may still be rolled up into COGS from an accounting stand point, and may even be related to production, but they are not actual components of the final product.

Is procurement of direct and indirect materials the same?

And in that sense, procurement of direct and indirect materials are very similar. Both share a common set of tasks and functions including:

Is direct procurement the largest cost category?

Certainly both direct and indirect materials, and therefore direct and indirect procurement, are critical for any business. After all, for many companies, including almost any company that sells physical products, external spending is (by far) their largest cost category — direct and indirect materials combined.

What are direct materials?

Direct materials are the materials used during production and are directly reflected in the final product. They include the raw materials, parts or sub-parts needed to produce a product. Since the cost of direct materials is quantifiable, they're easily and accurately allocated to individual production or batches and their production costs. Tracking and documenting the cost of these materials is important because they impact the cost of a product or service.

What is the difference between direct and indirect materials?

The primary difference between direct and indirect materials is their traceability to the final product. The usage of direct materials specifically targets what's needed to create a given product or service, and this usage is explicitly tied to the final product. Indirect materials aren't used as direct inputs in the production process because they aren't tied to the production of a specific product or service, even though they're still used during the process. Indirect materials primarily target the company's day-to-day operational and administrative needs.

Why are indirect materials not used in production?

Indirect materials aren't used as direct inputs in the production process because they aren't tied to the production of a specific product or service, even though they're still used during the process. Indirect materials primarily target the company's day-to-day operational and administrative needs. 2. Quantity of materials used in production.

What is the manufacturing process?

The manufacturing process for any product involves the use of direct and indirect materials, which contribute to production costs and profitability in different ways. Knowing the differences between direct and indirect materials can help you better understand their cost implications and help you determine profits and profit margins ...

What is favorable direct materials variance?

A favorable direct materials variance is when the price of materials or the quantity of materials used is lower than the expected price or quantity.

Why do companies order and use direct materials in larger quantities?

Companies typically order and use direct materials in larger quantities because they make up the primary component of a good or service. Comparatively, companies use insubstantial amounts of indirect materials, and these materials contribute to the operational needs of the company as a whole.

What is material yield variance?

Material yield variance: The difference between the amount of material the company uses during production and the amount it expects to use, multiplied by the budgeted cost of the materials