Raw materials are an example of a firm's explicit costs. Another term for explicit costs are fixed costs meaning that they are directly needed to run a business.
As the raw material are a direct cost to the company they are termed as a fixed cost as they are the assets of the production and consumption. But their availability is subject to a matter of use thus they are categorized as a variable cost to the resources of the company or firm.
An example is that o the wood as a raw matter has to be produced as finished goods thus the amount of seasonal wood available for the construction activities to take place is another cost to the company.
