Question

Industrial raw materials are _________ products.
(A) Primary
(B) Secondary
(C) Tertiary
(D) None of these

Answer 1

Hint: When a corporation makes use of uncooked substances stock in production, it transfers them from the uncooked substances stock to the work-in-process inventory. When a corporation completes its work-in-process items, it provides the completed objects to the completed items inventory, making them equipped for sale.

Complete Answer:
- Raw substances are substances or materials used in the foremost manufacturing or manufacturing of goods. Raw substances are commodities that are offered and bought on commodities exchanges worldwide. Traders purchase and promote uncooked substances in what is referred to as the element market due to the fact uncooked substances are elements of manufacturing as are labor and capital.
- Raw substances are used in a multitude of products. They can take many unique forms. The form of uncooked substances stock a corporation desires will rely on the kind of manufacturing they do. For manufacturing companies, uncooked substances stock requires precise budgeting and an exceptional framework for accounting on the stability sheet and earnings statement.
- All inventory, inclusive of uncooked substances inventory, ought to be valued at its complete cost. This ability consists of shipping, storage, and preparation. The usual journal entries in an accrual accounting machine for the preliminary purchases of uncooked substances stock encompass a deposit to money and a debit to inventory. Debiting stock will increase modern-day property and crediting money will decrease money property by way of the stock amount.
- Direct uncooked substances are substances that organizations immediately use in the manufacturing of a completed product, such as timber for a chair. Indirect uncooked substances are now not phase of the closing product however are rather used comprehensively in the manufacturing process.

Hence, the correct option is A.

Note: All the products, which are got from nature directly, are known as predominant products. Forestry, farming, mining, animal rearing and fishing are worried with the manufacturing of uncooked substances for meals and industrial uses. Hence, they are referred to as predominant activities.