Raw material expenses are the costs of the basic materials used in manufacturing a product.
For example, a candle manufacturer's raw material expenses for the quarter total $38,000 — covering $22,000 in wax, $9,000 in fragrance oils, $5,000 in wicks and jars, and $2,000 in labels — all of which are tracked separately from labour and overhead to calculate accurate product margins.
.avif)
.svg){kind=small}