cost of materials; material costs
Refers to the expense for raw materials or components in manufacturing, construction, cooking, etc.
The material costs for this product account for half of the total cost.
Because material costs soared, we had no choice but to raise the selling price.
経費 is a broader term for business expenses, including labor, utilities, etc., not limited to materials.
Compound of 材料 (material) and 費 (cost, expense).