Direct material and indirect material

please explain the what is direct material and indirect material and its different between them

Hi.
Direct materils: These material are bulkly needed and regularly needed for that orgnization to have their end product.  these materials usually raw materials ....
Indirect materials: these materils are needed with direct materlias  for the manufacture or to produce end product.
Ex: If your orgn's is cement Industry.
Direct materials: Silica Sand. etc..
Indirect matrials:BAG. Gypisum.....
Hope you are Understand with these example...
Regards
S B H

Similar Messages

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  • Direct Procurement and Indirect Procurement

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    Hi,
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    Hi
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  • DIRECT MATERIAL PROCUREMENT and INDIRECT MATERIAL PROCUREMENT

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    Ranjan Sutradhar

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    Rahul

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    Hi,
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  • Order as Direct material with result of reservation document

    Hi All,
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    Dinesh

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