Monday, 4 June 2012


Q1: Define "direct materials" and "indirect materials". List reasons for a large company having two separate departments to manage the purchasing of each.

"Direct Material"

Direct material is the materials which can be easily identified with the unit of production.
For example : the direct material is Toyota which is origin country is from Japan.

"Indirect Material" 

The material through the contact person which does not itself become a part of the product and whose cost in indirect.