Raw Materials In business?

Question

Does Anyone Know One cost and one benifit of using raw materials in business?

Answer 1

Raw materials are necessary for manufacturing. To take a number of raw materials and turn it into a finished product is what manufacturing is. Some of the costs incurred from raw materials is purchasing cost, shipping costs, and inventory holding costs. The benefit is you get to make the product. In the case of manufacturer vs. reseller, generally the margins are higher for manufacturing.

Answer 2

Processing cost
Local availability benefit