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Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.
Materials Overhead
Costs related to the production process that are not directly tied to the product being manufactured, such as factory supplies and equipment maintenance.
Raw Materials
Basic materials used in the production process to create goods and products.
Finished Product
A completed item ready for sale, having undergone all stages of manufacturing and preparation.
- Comprehend the role of raw materials, direct labor, and overhead in the cost of finished products.
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Learning Objectives
- Comprehend the role of raw materials, direct labor, and overhead in the cost of finished products.
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