Procter and Gamble buys unprocessed logs which are handled as little as needed to move them to its plant. Eventually, they become part of P and G's disposable diapers and are considered an expense item on P and G's income statement. For P and G, logs are:
A) farm products.
B) supplies.
C) component parts.
D) component materials.
E) raw materials.

Question

Quizplus · Accepted Answer

Logs are unprocessed raw materials that are used to manufacture disposable diapers. They are not considered component parts, as they are not assembled with other materials to create the final product. Rather, they are transformed into disposable diapers through a manufacturing process. Therefore, the best choice is E, raw materials.

Procter and Gamble Buys Unprocessed Logs Which Are Handled as Little