direct material

Dictionary of Accounting Terms for: direct material
direct material

all the material that becomes an integral part of the finished product. Examples are the steel used to make an automobile and the wood to make furniture. Direct materials are charged to work-in-process as aninventoriablecost.

Dictionary of Business Terms for: direct material
direct material

cost of material that can be specifically identified with the product, such as wood and nails in furniture, but not gasoline that fueled the power saws used to fell the trees.

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