What are the parts and raw materials that a business purchases to turn into products?

• A. Form Utility
• B. Time Utility
• C. Possession Utility
• D. Materials

Answer: (D)

This question tests understanding of inputs used in production. Materials are the physical parts and raw materials a business purchases to turn into products—the starting point in making something, whether they’re raw substances or component parts that get processed or assembled. For example, steel, fabric, or screws are materials that become finished goods after manufacturing. This differs from form utility, which is value added by changing the product’s shape or composition; time utility, which is about having the product available when customers want it; and possession utility, which relates to making it easier to own or transfer ownership.