Does a Bill of Material include labor?
Also question is, what is included in a bill of materials?
A bill of materials or product structure (sometimes bill of material, BOM or associated list) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end product.
One may also ask, what is Bill of Material with example? A bill of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, subassemblies, parts and components, as well as the quantities of each, needed to manufacture a product. Take, for example, a bicycle manufacturer that wants to build 1,000 bicycles.
Secondly, what is a bill of materials used for?
A bill of materials is a centralized source of information used to manufacture a product. It is an engineering term that refers to the design of a product. Manufacturers that build products start the assembling process by creating a BOM.
What is Bill of Material in cost accounting?
A bill of materials is the record of the raw materials, sub-assemblies and supplies used to construct a product. The bill of materials is used to calculate the cost of a product, as well as to order parts from suppliers.