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raw material
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
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Examples of raw material in a Sentence
His experiences during the war were the raw material for the story.
First Known Use of raw material
1612
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
Definition of raw material for English Language Learners
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: the basic material that can be used to make or create something
Learn More about raw material
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See words that rhyme with raw material Thesaurus: All synonyms and antonyms for raw material Britannica.com: Encyclopedia article about raw material
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