8.03 Job Order/Assembly - BOM Rate
BOM Rate is a rate use to calculate total componets/materials qty required to produce X qty of End Product.
For example,
To make a cup of MILO KAO KAO, the standard ingredients rate (or called BOM RATE) are:
1) Milo Powder = 2 spoons
2) Water = 50ml
3) Sugar = 0.5 spoon
To make 10 cups of MILO KAO KAO, the standard total ingredients are:
1) Milo Powder = 2 spoons x 10 cups = 20
2) Water = 50ml x 10 cups = 500
3) Sugar = 0.5 spoon x 10 cups = 5