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ok i understand why nails and glue are indirect materials and don't need to be tracked for job ordering costing despite them being 1. measurable 2. already tracked to an extend for the sake of doing the job and resupplying materials
i had to do a full on mock tracking and costing to realize... it's not worth it. it's too insignificant in most cases.
there are, of course, cases where glue etc. can and should be a direct material.
i had to do a full on mock tracking and costing to realize... it's not worth it. it's too insignificant in most cases.
there are, of course, cases where glue etc. can and should be a direct material.
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the book said "you cant track every drop of glue and nail that goes into a project" and thats bullshit ok thats not a good enough answer for me
it is not cost effective to track the indirect materials. you will pay your accountant more in the time it takes them to track it than the amount of money you spent on the materials.
it is not cost effective to track the indirect materials. you will pay your accountant more in the time it takes them to track it than the amount of money you spent on the materials.
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