A component could be a raw material, subassembly or a part. However the identifying difference is that a component which could be a part, raw material or subassembly goes into a higher level assembly, item or part.
Components are a little different from raw materials. For example, Computers are made up of many different parts, such as a motherboard, CPU, RAM, and hard drive. Each of these parts are made up of smaller parts. We call these smaller parts components.
Examples of Components:
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