You are implementing cost management using Dynamics 365 Finance for a company.

[Reference:, Microsoft Docs - Cost Groups overview, "Direct outsourcing cost groups are for costs from vendors who provide specific manufacturing services as part of the production process.", 2. Direct manufacturing:Direct manufacturing cost groups capture labor costs directly involved in production, including machine operator labor costs., Machine operator labor costs are directly linked to manufacturing activities, and therefore classified under direct manufacturing cost groups., Reference:, Microsoft Docs - Labor costing and cost groups, "Labor costs that are directly involved in manufacturing processes should be classified under direct manufacturing.", 3. Direct materials:Direct materials cost groups are used for raw materials and components that are consumed in manufacturing., Raw steel used to manufacture car frames is a raw material and should be categorized under direct materials., Reference:, Microsoft Docs - Cost groups types, "Direct materials include raw materials and components consumed during manufacturing.", , , ]