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Raw Materials
The basic materials from which a product is made, which are processed in a manufacturing operation to complete a finished good.
Overhead Costs
Indirect costs of running a business that are not directly tied to producing a good or service, such as rent, utilities, and administrative expenses.
Machine Hours
The total hours that machinery is operated in the production process, used in costing and operational efficiency analysis.
Conversion Costs
Conversion costs refer to the sum of direct labor and manufacturing overhead costs that are incurred to convert raw materials into finished goods.
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