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CO111

Direct Material Costs

Direct Material Costs 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 Total Landed Cost.

Calculation

Direct Material Costs
=
Material Purchase Cost + Material Transportation Cost + Other Direct Material Costs   × 100 %
Revenue

where

Unit of measure: %

Importance

A lower number of days indicate better control of the costs to source and make sellable products/services.

Alternative names include: Raw Materials Landed Cost.

Notes

t:OM

Community Importance Rating:
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Hierarchy

IDNameLevelx
CO11Cost of Goods Sold2CO11
CO111Direct Material Costs3CO111

Process(es)

IDNameLevelx
P203Calculate Sourcing Plan3P203
S102Receive3S102
S10201Schedule Appointment4S10201
S10202Check-In4S10202
S10203Queue Activities4S10203
S10204Inspect Vehicle4S10204
S10205Weigh-In4S10205
S103Unload3S103
S104Inspect3S104
S201Create Order3S201
S203Receive3S203
S204Unload3S204
S205Inspect3S205
S302Negotiate & Award3S302
S303Create Order3S303
S304Receive3S304
S305Unload3S305
S306Inspect3S306
M302Complete Order Engineering3M302
M405Issue Material3M405
M410Transfer3M410
D203Route & Schedule Order3D203
D304Schedule Project Resources3D304

Term(s)

IDNameClearx
TLCTotal Landed CostTLC
Direct Material Costs Cost Of Goods Sold 41110 3 {{{keywords}}} {{{description}}}