COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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milk, coffee, and chocolate used to make a mocha.
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partially finished goods waiting for completion and resale.
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Detailed explanation-1: -Examples of raw materials include steel, oil, corn, grain, gasoline, lumber, forest resources, plastic, natural gas, coal, and minerals. Raw materials can be direct raw materials, which are directly used in the manufacturing process, such as wood for a chair.
Detailed explanation-2: -Direct raw materials are all the materials that make up the finished product. For example, all the parts used to make a bed would be considered direct raw materials, from the wood to the metal frame and components like screws.
Detailed explanation-3: -A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products.