Direct Materials are those materials traceable to the good or service being produced. The cost of these materials can be directly charged to products because physical observation can be used to measure the quantity used by each product. Materials that become part of a tangible product or those materials that are used in providing a service are usually classified as direct materials. For example, steel in an automobile, wood in furniture, alcohol in cologne, denim in jeans, braces for correcting teeth, surgical gauze and anesthesia for an operation, ribbon in a corsage, and soft drinks on an airline are all direct materials.