Direct Material Definition with Explanation and Examples
Table of Contents
Direct Material
Definition
Materials that become integral part of finished product and that can be economically and conveniently identified with it are called Direct Material.
Explanation
Direct materials include raw materials as well as manufactured parts. Literally, raw materials mean substances in crude form e.g, iron ore, lumber, cotton, soya-bean etc. However, technically raw materials also include products that are processed to some extent but still they are to undergo a change of from for the manufacturing of another finished product e.g, steel sheets for automobile manufacturing, logs for furniture manufacturing cotton cloth for garments, soya-bean oil for ghee etc. On the other hand, manufactured parts are materials that are assembled into finished product without any change of form e.g, batteries in automobile, locks in office tables, leather belts in trouser, etc.
Examples of Direct material
Basic Raw Material
- Clay in bricks
- Paper in books
- Steel in machines
- Cloth in garments
- Timber in furniture
- Milk and cream in ice cream
- Gold and silver in jewellery
Primary packing materials
- Can for tinned food and drink
- Bottles for water
- Tin packing for ghee and oil
- Bag for cement
- Plastic packing for milk, ghee and oil