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

• Variance analysis (accounting)
• Direct material total variance
• Direct material price variance
• Direct material usage variance