6 Main Components in Direct Material Cost | Cost Accounting

The following points highlight the six main components in direct material cost. The components are: 1. Indirect Taxes 2. Transport, Storage and Delivery Charges 3. Quantity Discounts 4. Trade Discount 5. Cash Discount 6. Packing and Container Charges. Component # 1. Indirect Taxes: The indirect taxes like sales tax, central sales tax, excise duty, customs duty payable by the buyer [...]