raw material

noun
Updated on: 13 Oct 2017

Definition of raw material

:crude or processed material that can be converted by manufacture, processing, or combination into a new and useful product
  • wheat … is raw material for the flour mill
  • —C. A. Koepke
; broadly :something with a potential for improvement, development, or elaboration
  • perplexities are often the raw material of discoveries
  • —Agnes M. Clerke

Examples of raw material in a Sentence

  1. His experiences during the war were the raw material for the story.

First Known Use of raw material

1612

raw material Synonyms


Financial Definition of RAW MATERIAL

raw material

What It Is

Raw materials are commodities, parts or substances that are assembled or processed to form a final product.

How It Works

For example, the raw materials involved in chocolate chip cookies are butter, sugar, eggs, flour, vanilla, baking powder and chocolate.

Why It Matters

Raw materials determine the quality and cost of producing an item. Many raw materials are commodities that trade on the futures market. For many companies, acquiring raw materials at a good price makes the difference between having a profitable year and having an unprofitable year.

Raw materials may be considered unfinished goods and thus recorded as inventory on the balance sheet.


RAW MATERIAL Defined for English Language Learners

raw material

noun

Definition of raw material for English Language Learners

  • : the basic material that can be used to make or create something



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