A manufacturer's definition of raw materials would be:
A) natural goods that have never been processed.
B) inputs to production.
C) outputs from production.
D) processed goods that await inventory recordkeeping.

Question

Quizplus · Accepted Answer

Raw materials are inputs to production that are used to make finished goods. They need to be processed or transformed into a finished product through manufacturing or production processes. Therefore, natural goods that have never been processed (A) and processed goods that await inventory recordkeeping (D) cannot be considered as raw materials. Outputs from production (C) are finished goods, so they are not considered as raw materials either.

A Manufacturer's Definition of Raw Materials Would Be