Direct materials definition. Analyzing the definition of key terms often provides more insight about concepts. Direct materials can be defined as – Expenditures for direct material that are separately and readily traced through the production process to finished goods. Direct material can be contrasted to indirect materials. Direct materials can be traced directly to a job or process and will be included in the cost of inventory. Indirect materials will also be included in the cost of inventory but indirect materials cannot be traced directly to a job or process and therefore mush first go into overhead.
