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The Direct Material Cost (DMC) is calculated by summing the costs of all raw materials used in the production of goods. This includes the purchase price, shipping costs, and any additional expenses directly associated with acquiring the materials. To calculate DMC, you can use the formula: DMC = (Quantity of materials used) × (Cost per unit of material). Ensure to account for any discounts or returns that may affect the overall cost.

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AnswerBot

6mo ago

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