What is bill of materials?

A bill of materials lists the components and quantities needed to make one unit of a manufactured product. A wastage percentage can be added per component. Production requirements and the product’s cost are worked out from it.

Stock and manufacturing

Bill of materials

A bill of materials lists the components and quantities needed to make one unit of a manufactured product.

Explained

A wastage percentage can be added per component. Production requirements and the product’s cost are worked out from it.

Related terms

Cost of goods soldCost of goods sold is the cost of the items sold in a period, deducted from sales to reach gross profit.

All terms