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Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.
Material
Substantial or significant; in accounting, referring to an amount that would influence the decision of an informed user.
Labor
The human effort (physical or mental) contributed to the production of goods and services.
Overhead
Overhead refers to the indirect costs associated with running a business, such as rent, utilities, and administrative expenses, that are not directly tied to the production of goods or services.
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