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What is the meaning of raw material consumption?

Raw Materials Accounting Consumption
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Question added by varadharajan ranagaswamy , Manager - Accounts , M/s.Interfit India Limited
Date Posted: 2013/07/30
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Muhammad Arshad Kadhar
by Muhammad Arshad Kadhar , Head of Internal Audit (Sr. Manager) , National Testing Service Pakistan

Raw Material Consumption Means the Raw Material Used for Production of any Goods.
The Goods Produced; have three elements of cost01) Cost of Raw Material Consumed,02) Cost of Labour Used to Produced those Goods and03) Factory Overheads Costs.
All of these three elements are added to account for the Cost of the goods produced.
The Statement used to compute this cost is called "Statement of Cost of Goods Manufactured"

Sethumadhavan Krishnan
by Sethumadhavan Krishnan , Export Sales Admiistrator , ALSORAYAI GROUP

Bill of Material (BOM) calculated for manufacturing any product is considered raw material consumption based on the unit of product produced in any given time.

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