What is the term for materials that are necessary for production but not yet processed into finished goods?

The term that refers to materials necessary for production but not yet processed into finished goods is "raw materials." Raw materials are the basic substances that are transformed during the production process into finished products. They are fundamental to manufacturing because without these unprocessed inputs, production cannot occur.

In contrast, components typically refer to items that have undergone some processing and are used in the assembly of finished goods. Goods in process, also known as work in progress, encompass items that are still in the production process and have not yet been completed. While inventory is a broader term that includes all items—raw materials, work in progress, and finished goods—it does not specifically point to the initial form of materials that are essential before the production can begin. Thus, raw materials are specifically defined as the input materials in their unprocessed state needed for manufacturing.