Final answer:
Direct materials in service organizations represent the physical items directly traceable to a project, such as rakes and shovels in landscaping, but they are usually minimal compared to labor and overhead costs.
Step-by-step explanation:
In a service organization, direct materials that are applied to job costs tend to be minimal or non-traditional compared to manufacturing industries. For a service business like a landscaping company, which may rake leaves or shovel snow, the direct materials could include the physical items such as rakes, shovels, and perhaps the de-icing materials or leaf bags used during the service. These items are specific to each job and can be directly traced to a customer's project, attributing cost directly to jobs. Conversely, materials in manufacturing are the physical components that make up the final product. Generally, in service industries, labor costs and overhead costs, such as machinery and transportation, represent a more significant portion of job costs, with direct materials being far less central compared to the other factors of production.