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.
|Direct Material Costs|
Unit of measure: %
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.
Community Importance Rating:
|P203||Calculate Sourcing Plan||3||P203|
|S302||Negotiate & Award||3||S302|
|M302||Complete Order Engineering||3||M302|
|D203||Route & Schedule Order||3||D203|
|D304||Schedule Project Resources||3||D304|