Question

Which of the following is said to be the cost of raw materials?

(a) Cost of transportation

(b) Cost of preparation for use

(c) Cost of collection

(d) All of the mentioned

I have been asked this question during an interview.

I'm obligated to ask this question of Technical Operations in division Hydrolysis of Unit Processes

Answer 1

The correct choice is (d) All of the mentioned

For explanation: The cost of raw material is the sum of six items: (1) cost at point of production, (2) cost of collection, (3) cost of transportation, (4) cost of storage to ensure year-round supply, (5) cost of preparation for use, (6) and cost of disposing of by-products.