Direct materials cost
Direct materials cost the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing.[1]
The manufacture of products or goods requires material as the prime element. In general, these materials are divided into two categories. These categories are direct materials and indirect materials.[2]
Direct materials are also called productive materials, raw materials,[citation needed] raw stock, stores and only materials without any descriptive title.
See also[edit]
- Variance analysis (accounting)
- Direct material total variance
- Direct material price variance
- Direct material usage variance
References[edit]
- ^ Lanen, W. N., Anderson, S., Maher, M. W. (2008). Fundamentals of Cost Accounting, McGraw Hill, ISBN 978-0-07-352672-0
- ^ Michael R. Kinney, Cecily A. Raiborn, Cost Accounting: Foundation and Evolution, 7th edition
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