Raw Materials Definition & Example - InvestingAnswers
2020年8月12日 · 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 ...
Raw Materials - Canada Commons
2024年10月16日 · A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished products, energy, or intermediate materials that are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are required to produce other ...
COGS - Cost of Goods Sold Definition - InvestingAnswers
2020年9月29日 · If Company XYZ's raw materials prices never changed, it might be practical for Company XYZ to calculate total cost of goods sold by multiplying $17 by the number of eyeglasses sold in a period. However, raw materials prices frequently do change, and when Company XYZ sells a pair of eyeglasses, it must determine exactly which materials it was ...
Inventory | Examples & Definition - InvestingAnswers
2021年5月17日 · 1. Raw Material Inventory. The raw material inventory is at the beginning of the supply chain. These are the materials the products will be created from. For example, steel and rubber are used to produce vehicles while textiles and wood are the raw material inventory used to produce furniture. 2.
Commodity | Meaning & Example - InvestingAnswers
2021年5月12日 · There are three main categories of commodities -- agriculture, energy, and metals. Commodities that fall under the agriculture category include foodstuffs like sugar, grains, livestock, and raw materials such as cotton. Energy commodities include natural gas and crude oil, whereas metals include mined materials such as gold and silver.
Factors of Production Definition & Example - InvestingAnswers
2019年10月1日 · Land, for example, provides raw materials such as lumber, minerals and metals. Labor represents the people and skills necessary to manipulate, process, distribute, market and handle raw materials as well as finished goods and services.
Backflush Costing Definition & Example - InvestingAnswers
2020年9月29日 · Backflush Costing Example. For example, let's assume that Company XYZ manufactures widgets. It has a variety of choices in how it handles obtaining and recording the costs of its raw materials and labor. For example, it could order a year's worth of widget parts every January and warehouse them for use during the next 12 months of widget ...
Vertical Integration Definition & Example - InvestingAnswers
2020年8月11日 · Vertical integration can ultimately create barriers to entry for potential competitors, especially if the company controls access to some or all of a scare resource involved in production. This is why in some cases a company may control so much of the market or supply of raw materials that vertical integration can raise antitrust concerns.
Goods in Process Definition & Example - InvestingAnswers
2019年10月1日 · Goods in process = (operating inventory goods in process + raw materials used during the period + direct labor during the period + factory overhead for period) - ending inventory. The value of that partially completed inventory is recorded as goods in process on the asset side of the balance sheet. For example, let's assume Company XYZ ...
Economies of Scale Definition & Example - InvestingAnswers
2020年8月28日 · Although economies of scale are often an incentive to expand production, the creation and manufacture of new products often turns out to be less efficient than expected. The need for additional managerial expertise or personnel, higher raw materials costs, a reduction in competitive focus, and the need for additional facilities can actually ...