Materials are classified according to their nature type using the basis of materials are classified into the following categories.
A) raw material
Those are the materials or basic input required for manufacturing the finished products. These materials undergo certain processing and change in it so as to make the finished product some of the raw material are are available in the nature but they cannot be put to use directly. They are required to be processed before using it for making a product example iron, coal, Timber.
Thus we can say that is the finished product of one industry is the raw material for other industry for example sugarcane cotton are the finished products of Agricultural which are are further used as raw material by the sugar factory ginnning mill etc.
B) components & Assemblies.
The processed raw material convert in composite or assemblies which form a part of the finished products. These components or assemblies may be manufactured by the manufacturer himself or they may be purchased from other manufacturer or supplier as raw material and used in the finished product.
3) consumables
These arere materials which indirectly helps in converting the raw material into finished product they do not form a part of a finished product.
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