Direct material costs

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Direct material costs are part of the manufacturing costs ; they are costs that can be assigned directly to a cost unit in cost accounting . The direct material costs are the basis for the allocation of the material overheads .

First of all, a counterexample to explain: The costs for marketing are not direct material costs because it is difficult to assign the total expenditure for marketing to the individual products. So it is not possible to say exactly how much effort was put into selling a certain product.

Individual material costs are, for example, the costs for a blank that is then processed later. The costs for the blank can easily be assigned to the subsequent product (e.g. a shaft).

For the balance is in Germany capitalized in accordance with § 255 HGB .

See also