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Raw Materials
Raw materials are the unprocessed or minimally processed resources used to produce goods, forming the basic input in manufacturing processes.
Gross Method
Gross method is an accounting practice where purchases are recorded at full cost without accounting for any purchase discounts potentially available.
Net Method
An accounting approach that records transactions after deducting any discounts, rather than recording them at their gross amount and including the discounts as a separate item.
Purchase Discounts
Price reductions given by suppliers to buyers as an incentive for early payment of their purchase invoices.
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