Raw Materials Definition
Raw Materials Definition:
Materials that are used to make a product. A finished product of a firm can be a raw material for another firm. For example plastic is a finished product for the manufacturer of plastic but raw material for manufacturers of computers who use plastic to make casings of computers.
Other Related Accounting Articles:
- Make or Buy Decision Definition
- Indirect Materials Definition
- Direct Materials Definition
- Warranty
- Bill of materials Definition
- Direct Material Price Variance
- Material Requirements Planning (MRP) Definition
- Cost of Goods Sold
- Revenue Forecasting
- Vertical Integration Definition
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