Product production’s monetary investment. Things that incur material costs, for example, are the ingredients of a meal or the parts of a machine. The cost of labor to produce the product is separate from this cost. The total cost of a product and its eventual sale price are arrived at by combining the material cost with the cost of labor.
Link to This DefinitionDid you find this definition of MATERIAL COST helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary