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Equivalent Units
A concept used in process costing that converts partially completed units into a number of equivalent fully completed units.
Processing Department
A division or area in a manufacturing facility where a specific type of operation or process is carried out on a product as it moves towards completion.
Equivalent Units
A concept used in process costing that converts partially completed units into a smaller number of fully completed units.
Conversion Costs
The combined costs of direct labor and manufacturing overhead, representing the expenditures to convert raw materials into finished goods.
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