Direct Material Cost
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MS: Kos Bahan Langsung · EN: Direct Material Cost · ZH: 直接材料成本
Meaning
Direct material cost is the cost of raw materials that can be traced directly to the finished goods produced. These materials are physically used in the production process and can be measured per unit of output. It is recorded at the top of the Manufacturing Account as part of prime cost.
Example
Sinar Kayu Furniture buys RM40,000 of teak wood to make tables. This wood cost is a direct material cost because it becomes part of the finished table, and is entered at the start of the Manufacturing Account.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5