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What is a BOM?

Author:
Harold Averkamp, CPA, MBA

Definition of BOM

BOM is the acronym for bill of materials. A BOM is a listing of the quantities of each of the materials used to manufacture a product.

Industrial manufacturers are likely to have an enormous number of BOMs. Each of the BOMs will be a very detailed list of all of the quantities of every material used in the various steps of manufacturing each product or component part.

Example of BOM

Assume that a small company manufactures gourmet pies. There will be a bill of materials (BOM) for each batch of similar pies. The BOM will list the number of pounds (or other unit of measure) of the specific fruit, the quantity and type of sugar (or other sweetener), the quantity and type of cinnamon, the quantity of nutmeg, the type of pie crust.

There will also be a BOM for a batch of each type of pie crust. This BOM will list the quantity and type of flour, the quantity and type of butter (or oil), the quantity of salt, etc.

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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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