Question

Swivel Vacuums manufactures several models of vacuum cleaners. For each vacuum, they use 6 small screws to hold the bottom frame in place. The company purchases these screws in packs of 10,000 for $137.49. If the total cost of goods sold for one vacuum is $87.53, how would you classify the cost for the screws? Why?

Answer 1

The cost of the screws would e classified as Indirect Materials

Step-by-step explanation:

The indirect materials are those resources that are used to assemble direct material into finished products and can´t be traced back to the product they produce.

These crews don´t really have any value themselves and don't add any meaning value to the overall vacuums compared to its price.