Material Costs

Material refers to each physical input into the production procedure. They involve the giving as:

• Raw material refers to bought in material that is used in the manufacture of the product. As per to the organization raw material may next be classified like steel, timber.
• Subassemblies and Components that is bought in components and subassemblies that are incorporated in the product
• Work in progress that is partly finished assemblies and products incorporating raw materials and or subassemblies
• Consumable materials that is materials utilized in the operation of the factory and during production but do not appear in the product as like an example of detergents
• Maintenance materials that is materials of all types utilized in keeping machinery, vehicles and buildings as like an example of spare parts, lubricating oil and grease
• Office materials; materials utilized in operation of the office as like an example stationery