This is used in Formulation Output Basis CACS screen. you can setup different CACS rule that is available in Formulation BOM Item Output, then when you launch a CACS screen in output basis, you will see this rule.
And the difference between Intermediate Processes and Raw Materials in CACS, let me explain with an example, i have a hierarchy setup as below:
if i select context of Output B in Formulation A, and when i launch a CACS screen in Output A basis, I will have three options:
Top Level--- it will retrieve attributes from Output A as CACS review Parameters;
Intermediate Processes -- it will retrieve attributes from Material X and Output B as CACS review Parameters;
Raw Materials -- it will retrieve attributes from Material X, Output B, Material M and Material N as CACS review Parameters.
Hope this helps.