Raw materials
A) are treated as expense items.
B) are unprocessed but eventually become part of a final physical good.
C) include both farm products and natural products.
D) move to the next production process with little handling.
E) All of these alternatives are correct.

Question

Quizplus · Accepted Answer

Raw materials are treated as expense items when they are used in production. They are unprocessed materials that eventually become part of a final physical good. These materials can include both farm products (like wheat or cotton) and natural products (like minerals or timber). Typically, raw materials move to the next production process with little handling, as they are in a form that is ready to be transformed into a more complex product.

Raw Materials