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Conversion Costs
The combined cost of direct labor and manufacturing overheads involved in converting raw materials into finished goods.
Weighted-Average Cost Method
A costing method that assigns the cost of inventory based on the average cost of all similar items in the inventory, regardless of when they were purchased.
Blending Department
A part of a manufacturing process where ingredients are combined according to specific recipes to produce a final product.
Sequential Processes
Steps in manufacturing or service delivery that are performed in a specific order, where the completion of one step is dependent on the completion of the step before it.
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