One brand of tomato sauce advertises that the tomatoes it uses are processed within 24 hours of being picked to ensure product freshness. what are the fresh tomatoes it buys from growers examples of raw materials.
Raw materials are the products which are used in the multitude of products and it can take many different forms.
Raw materials are those input goods or inventory which any company needs to manufacture its products. For example, the steel which is used to manufacture vehicles would be considered as a raw material for an automobile manufacturer.
For manufacturing companies, raw materials inventory generally requires detailed budgeting as well as a special framework for accounting on the balance sheet and income statement.
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