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By variable cost and direct cost I categorize if I am reporting sheets of metal which are being used mainly in producing a car at a car manufacturing facility.
Cost of production = Direct Materials + Direct labor + Direct Expense + Variable Factory Overhead. Under variable costing, only those manufacturing costs that vary with output are treated as product costs. This would usually include direct materials, direct labor, and the variable portion of manufacturing overhead.
Direct Material Cost is the total cost incurred by the company in purchasing the raw material along with the cost of other components including packaging, freight and storage costs, taxes, etc. that are related directly to the manufacturing and production of various products of the company.
Sheet metal is one of the shapes and forms metal can be bought in. Sheet metal is any metal that has a thickness in between 0.5…6 millimeters.
There are other measurement units used to categorize metals by thickness, though.
Foils, sheets and plates are pretty much the same, with the only difference being in thickness. Thickness is measured in 3 ways – millimetres, mils and gauges. While millimetre is a pretty straightforward unit, mils and gauges are only common in engineering and manufacturing.
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