Material cost principles govern valuation, assignment, disclosure, and exclusion of abnormal costs in cost statements. Principles are laid down for determining material cost in cost statements, including classification, measurement, assignment, presentation and disclosure. Material receipts are valued at purchase price with directly attributable costs, while finance costs, demurrage, detention charges and penalties are excluded. Self-manufactured materials, issue valuation methods, abnormal cost treatment, assignment to cost objects, and disclosures on valuation basis, excluded items and related-party procurement are also specified.