The information in a BOM is linked to different sizes, sources, and colorways. It is important to emphasize the concept of the BOM totals when they are fed into costing.

Material costs always affect the cost to produce a product. Regardless of who purchases the materials, cost is always affected. Items can be produced using full package methods (FOB, where the factory is responsible for purchasing materials) or assembly only methods (CMT, where the manufacturer is responsible for purchasing materials). Rows of the BOM include quantity and price information. Cost of individual rows need to be calculated, and rows need to be totaled by section (self, trim, labeling, and so on), and then finally by product.

BOM totals often feed directly into a manufacturer’s cost sheet for the product, and BOM information is often exported to a mainframe for purchasing, requirements planning, and final costing.