indirect material

Definition

Materials that are needed for the production of a good or service, but are not raw materials or inputs to the production process. Examples may include maintenance tools, cleaning products, or office supplies. The cost of indirect materials is typically classified as overhead for accounting purposes.

Use indirect material in a sentence

You should try to make sure that you always have enough of any indirect material that you may need to make your product.

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My boss asked me to reduce the amount of cleaning products we used in our factories because he was trying to cut the amount of indirect material we used in production.

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One of the areas of improvement our administration is keying on to reduce costs is our indirect material as these costs have been steadily increasing but not improving the product going out the door.

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