https://orwiki.org/index.php?action=history&feed=atom&title=m%3ACO111 2026-06-21T03:06:41Z Revision history for this page on the wiki MediaWiki 1.28.0 https://orwiki.org/index.php?title=m:CO111&diff=12002&oldid=prev 2017-06-10T13:48:27Z

<p>1 revision imported</p> <p><b>New page</b></p><div>{{this}} measures the expense a company incurred to acquire sellable products (buy products) or acquire materials, ingredients, services to manufacture sellable products (make products). It includes the original purchase price of the raw materials as well as the costs of transportation, customs, duties, taxes, insurance, currency conversion and payment fees to move the materials to the receiving facility. Compare to [[Link::TLC|Total Landed Cost]].<br /> ===Calculation===<br /> {{math|{{this}}|{{frac|Material Purchase Cost + Material Transportation Cost + Other Direct Material Costs|Revenue|100 %}}}}<br /> where<br /> * [[m:CO1111|Material Purchase Cost]] = Total annual price paid for goods or services purchased<br /> * [[m:CO1112|Material Transportation Cost]] = Total annual inbound transportation cost<br /> * Other Direct Material Costs = Sum of total annual costs for [[m:CO1113|Material Customs, Duties, Taxes &amp; Tariffs Cost]], [[m:CO1114|Acquisition Labor Cost]], [[m:CO1115|Acquisition Automation Cost]], [[m:CO1116|Acquisition Property, Plant &amp; Equipment Cost]] and [[m:CO1117|Acquisition GRC, Inventory &amp; Overhead Cost]]<br /> * Total Revenue = Total annual revenue from sales of products and services<br /> Unit of measure: %<br /> ===Importance===<br /> A lower number of days indicate better control of the costs to source and make sellable products/services.<br /> <br /> Alternative names include: [[Link::t:TLC|Raw Materials Landed Cost]].<br /> ===Notes===<br /> [[Category:Metric]]<br /> &lt;ins&gt;<br /> [[Link::t:OM]]<br /> &lt;/ins&gt;<br /> {{Object<br /> |name=Direct Material Costs<br /> |parent=m:CO11<br /> |sort=41110<br /> |level=3<br /> }}</div>

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