But some raw materials cannot

But some raw materials cannot - compounds). Or, (2) they...

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But some raw materials cannot be easily associated with the finished product. These are called indirect materials. Indirect material have one of two characteristics: (1) They do not physically become part of the finished product (such as lubricants and polishing
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Unformatted text preview: compounds). Or, (2) they cannot be traced because their physical association with the finished product is too small in terms of cost (such as cotter pins and lock washers). Companies account for indirect materials as part of manufacturing overhead...
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