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The Solomon four-group design:
Batches
Groups of items or goods processed or produced at the same time within a manufacturing operation.
Overhead Costs
Indirect expenses related to the day-to-day running of a business, such as rent, utilities, and administrative costs, which are not directly tied to production or sales.
Direct Materials
Raw materials that can be directly attributed to the production of goods or services and are an integral part of the finished product.
Fixed Costs
Regular expenses that an entity incurs, which are not affected by changes in business activity levels, such as lease payments and insurance premiums, essential for financial planning.
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