Examlex
The more diverse the firm's global supply chain, the lesser the cost of logistics.
Direct Labor
Costs associated with employees who are directly involved in the production of goods or the provision of services, such as wages for factory workers.
Direct Materials
Direct materials are the raw materials that can be directly traced to the production of goods.
Variable Overhead
Expenses that fluctuate with production volume, including costs like utilities and indirect labor, that are not directly tied to specific units of production.
Absorption Costing
A costing technique that incorporates every element of manufacturing expenditure, such as direct materials, direct labor, along with variable and fixed manufacturing overheads, into the pricing of a product.
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