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&G's disposable diapers and are considered an expense item on P&G's income statement. For P&G, logs are:

Question

Quizplus · Accepted Answer

Logs are unprocessed and are used as the starting material for making disposable diapers. Hence, they are raw materials for P&G.

Procter and Gamble Buys Unprocessed Logs Which Are Handled as Little