Cost of material that can be specifically identified with the product, such as wood and nails in furniture, but not gasoline that fueled the power saws used to fell the trees.
Direct Material
| Business Dictionary: Direct Material |
| 5min Related Video: Direct Material |
| Accounting Dictionary: Direct Material |
All the material that becomes an integral part of the finished product. Examples are the steel used to make an automobile and the wood to make furniture. Direct materials are charged to work-in-process as an inventoriable cost.
Learn More
 | Input Cost (in accounting) |
| Variable Cost (business term) |
| Direct Materials Price Standard (in accounting) |
Help us answer these
 | What is the purpose of Direct Materials Budget? |
| What are the uses for a direct materials budget? |
| Direct material costs are recorded where? |
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 | Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Input Cost (in accounting)
- Variable Cost (business term)
- Direct Materials Price Standard (in accounting)
- Prime Cost (in accounting)
- Material (business term)
- Genetic Engineering (science)
- Equivalent Units (in accounting)
- Indirect Cost (business term)
- Actual Cost (in accounting)
- Work-In-Process (WIP) (in accounting)
- Cost of Goods Manufactured Schedule (in accounting)
- Normal Absorption Costing (in accounting)
- Factory Overhead Budget (in accounting)
- Product Cost (in accounting)
