Direct materials inventory refers to the raw materials that a company keeps in stock for future use in the production process. These materials are a critical part of cost accounting and inventory management.
Indirect manufacturing costs, also referred to as factory overhead, are expenses that cannot be directly tied to a specific product or production process. These costs include maintenance, utilities, and depreciation of manufacturing equipment.
Total cost of production is a term used to refer to the overall expense incurred by a company to manufacture a product or provide a service. It includes both fixed and variable costs.
