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According to the textbook, the best way to become a critical thinker is to
Direct Materials
Raw materials that can be directly traced to the manufacturing process of a product and are a significant portion of the production cost.
Gross Profit
The subtract of cost of goods sold from net sales, indicating the efficiency of a company in managing its production and labor costs.
Factory Overhead
Factory overhead encompasses all the indirect costs involved in manufacturing a product, which may include utilities, maintenance, and management salaries, excluding direct materials and labor costs.
Direct Labor Costs
The total cost of all the labor force that is directly involved in the production process, measured by wages, salaries, and benefits of those who actually work on the product directly.
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