Bill of materials
Bill of materials or BOM is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture end products. A Bill of materials may be used for communication between manufacturing partners, or restricted to a single manufacturing plant. A Bill of materials can define products as they are designed as they are ordered, as they are built, or as they are maintained.
Product cost –includes costs incurred– for manufacturing or for purchasing goods. In case of manufacturing business product cost consists of direct materials, direct labour and factory overhead. In case of trading business, product cost involves purchase price plus transportation in plus other costs associated with
Measuring Direct Materials Cost in Job Order Costing System: Learning objective of this article: What is a materials requisition form. Give an example of materials requisition form. What is a job cost sheet. Give an example of job cost sheet. How direct materials cost
Direct Materials Price and Quantity Standards: Learning Objective of the articles: Define and explain direct materials price standards and direct materials quantity standards. Explain how direct materials price and quantity standards are set? Contents: Direct Materials Price Standards Direct Materials Quantity Standards Example of
Issuing and Costing Materials into Production: To control the quantity and cost of materials, supplies, and services requires a systematic and efficient system of purchasing, recording, and storing. Equally necessary is a systematic and efficient procedure for issuing materials and supplies. Materials Requisitions: The
Bill of materials Definition: Bill of materials is a document that shows the type and quantity of each major item of materials required to make a product.