raw material

raw material definition - business

raw material

The goods used in the manufacture of a product. For example, a furniture manufacturer is likely to have raw materials such as hardware, lumber, and metal tubing on hand. Raw material is carried as an inventory item in the current assets section of a firm's balance sheet.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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