Raw Material Costs

Heard in 2 episodes across 1 show since Jun 2026

Raw material costs refer to the direct expenses incurred by a business to acquire the basic, unprocessed substances or primary commodities used in the production of goods. These costs are a critical component of a company's cost of goods sold (COGS) and are highly sensitive to supply chain dynamics, market demand, and global commodity price volatility. Managing raw material costs is essential for maintaining profit margins and determining the pricing strategies of finished products.