Raw Materials
Categories: Econ
Uncooked materials. They go in to the making of...stuff.
So what's raw? A dozen 40-gallon vats of melted plastic when you're a pipe extruding company. Vats of rubber when you're a tire-or-condom-making company. Be sure you put the radial wires in the tires, not the condoms.
Raw materials are just the basic elements that go into something before it's properly manufactured. Think: eggs before they go into muffins. Raw, uncooked. On the balance sheet, they get listed as assets, held often at cost or book value, and exist as assets until they're taken off the balance sheet and put onto the income statement as expenses.
