Bill of materials
A bill of materials identifies the materials and quantities required for a specified product or assembly. It supports purchasing, production, standard costing and material-issue control. The record should distinguish net content from allowances for normal waste and should be updated for authorised design changes. It is a technical resource specification rather than a supplier invoice or proof that the materials have actually been issued or consumed.
Worked example
A product specification requires two metres of material A and four components B per unit, with any normal-loss allowance stated separately.
Common mistake
Do not double-count wastage if the standard input quantity already includes it, or use an outdated specification after a design change.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |