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Bill of Materials (BOM) describes hierarchically a complete set of components required to manufacture a finished, saleable product. A BOM can be single level or, depending on the production processes' complexity, may be represented in a tree structure or as an indented bill of materials.
BOMs are often referred to as recipes and their elements as ingredients. BOMs play a crucial role in engineering management, correct product costing, accurate inventory control, and minimizing accounting variances.
A well-designed and managed bill of materials can help to reduce time to market, increase profitability, and yield greater resistance to adverse market conditions.
For more information about Bill of Materials, visit http://en.wikipedia.org/wiki/Bill_of_Materials
