Raw material: Components used in the manufacturing process that are part of direct costs
- Examples: Wood, steel, parts, stuffing, cloth, oil, etc.
- Indirect costs such as factory utilities are not included
- Direct manufacturing labor cost is not included
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Recommended Tools
One of your top priorities as a small business owner is keeping a close eye on the money you bring in and pay out, which is why it’s critical to have the right accounting software. You need a program that helps you accomplish your daily accounting tasks. Here are our best picks for tools we recommend and use.
