Define: Raw Material Cost

How is Raw Material Cost defined in a legal contract?

• Raw Material Cost means the expenditure on materials and ingredients used for the production and packaging of each product and the associated in-bound freight. Seen in 3 SEC filings
• Raw Material Cost means the expense per unit of the materials used for the production, computed based on the accounting methodology used for its inventory, plus an allocation of other manufacturing costs. Seen in 3 SEC filings
• Raw Material Cost means the amount of money paid to a third party for providing materials and packaging materials for producing the product, net of any discounts or other benefits received. Seen in 2 SEC filings
• Raw Material Cost means the expense of materials used to manufacture the commercial products, determined in accordance with generally accepted accounting principles. Seen in 2 SEC filings
• Raw Material Cost means the actual cost of materials used in the manufacturing of the prime products. Seen in 1 SEC filing
• Raw Material Cost means the cost of materials used to manufacture the active ingredient, determined in accordance with generally accepted accounting principles. Seen in 1 SEC filing

Note: The Genie AI Legal Assistant pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

Search EDGAR for 'Definitions of raw material cost' yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 Our AI Legal Assistant has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Raw Material Cost means the expense incurred for materials used in manufacturing a product, including associated freight.

Relevant Contract Types

• Supply Chain Contracts
• Manufacturing Agreements
• Purchase Agreement

Relevant Circumstances

• When entering a partnership with a supplier
• When hiring a new manufacturer
• When purchasing materials or resources for production

Relevant Sectors

• Manufacturing
• Automobile Industry
• Electronics

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Genie Definition 2

• Raw Material Cost means the actual price of materials used in manufacturing, determined by standard accounting principles.

Relevant Contract Types

• Cost Plus Contracts
• Accounting Agreements

Relevant Circumstances

• When the pricing of materials fluctuates frequently.
• When accounting practices play a crucial role in determining costs.

Relevant Sectors

• Construction
• Pharmaceuticals
• Retail Industry

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