This term refers to direct charges actually paid or payable for items consumed or put into production during the year, including freight charges and other direct charges incurred by the establishment in acquiring these items. It includes the cost of these items whether purchased by the individual establishment from other companies, transferred to it from other establishments of the same company, or withdrawn from inventory during the year. Included are items charged to both current and capital accounts.

Included in this item are:

1. Costs of supplies used, minerals received for preparation, and purchased machinery installed. Includes all major supplies that were important parts of the cost of production, exploration, and development of a particular industry. Also included are all new and used machinery, equipment, and parts installed whether purchased or received from other establishments of the same company.
2. Cost of products bought and sold in the same condition.
3. Cost of purchased fuels consumed for heat, power, or the generation of electricity. Includes the cost of fuels consumed, whether purchased by the individual establishment from other companies, transferred to it from other establishments of the same company, or withdrawn from inventory during the year.
4. Cost of purchased electricity. The cost of purchased electric energy represents the amount actually used during the year for heat and power. In addition, information was collected on the quantity of electric energy purchased and also the quantity of electric energy generated by the establishment and the quantity of electric energy sold or transferred to other establishments of the same company.
5. Cost of contract work. This term applies to the cost of all work done for an establishment by others. It includes payments for supplies and equipment furnished by the contractor incidental to the contract work, and cost of services performed by others in the operation or development of the establishment. The term "contract work" refers to the fee a company pays to another company to perform a service. It excludes payments to miners paid on a per ton, car, yard, or footage basis. Also excluded are payments to suppliers who mined for their own account on property owned or leased by them and who paid royalties either directly or indirectly on the minerals mined.

Specific supplies used, minerals received for preparation, and purchased machinery installed

In addition to the total cost of supplies, purchased machinery installed, etc., which every establishment was required to report, information also was collected on the consumption of the major supplies used in mining. The inquiries were restricted to those supplies that were important parts of the cost of production, exploration, and development in a particular industry and for which cost information was available from the establishment's records. Except for the crude petroleum and natural gas and the support activities for mining industries, figures were also obtained on crude minerals mined at the establishment, received from other establishments of the company or purchased from others, and received for preparation on a custom or toll basis. If less than $25,000 of a listed supply was consumed by an establishment, the cost data could be reported in the "All other supplies" Census supply code 00970098. Also, the cost of supplies for small establishments for which administrative records or short forms were used was imputed into the "Undistributed minerals, purchased machinery, parts" Census supply code 00973000.

Specific fuels consumed

For most industries, separate quantity and cost figures are shown for purchased coal, distillate fuel oil, residual fuel oil, gas, gasoline, and a cost figure for other fuels. Data also were obtained on the quantity of crude petroleum, natural gas, and coal produced and consumed at the same establishment for heat and power. The cost of fuels for small establishments for which administrative records or short forms were used was imputed into the "Undistributed fuels" Census fuel code 00974000.