Question

what do you mean by raw material?​

Answer 1

A good example of raw material is lumber for a guitar manufacturer like Fender Guitars. When Fender gets a shipment of lumber, it records the lumber as raw material inventory because the wood will eventually be finished goods inventory or guitars.

There are many different types of inventory across the business spectrum. Manufacturers have different types of inventory than retailers and retailers have different types of inventory than restaurants. These materials are most often associated with manufacturers.

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