Examlex
What information is found on the explanation of benefits (EOB)?
Overapplied Overhead
A situation where the allocated manufacturing overhead costs are higher than the actual overhead expenses incurred.
Raw Materials
The basic materials from which products are made, which have not yet been processed or used in manufacturing.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product.
Indirect Materials
Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used on machinery.
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