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Home > QFINANCE Dictionary > Definition of material cost

Definition of

material cost

Operations & Production

price paid for product's raw materials the cost of the raw materials that go into a product. The material cost of a product excludes any indirect costs, for example, overhead or wages, associated with producing the item.

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Definitions of ’material cost’ and meaning of ’material cost’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’material cost’ and other financial terms with our online QFINANCE Financial Dictionary.

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