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DSM-IV-TR is most helpful because:
Direct Materials
The essential components or raw inputs used directly in the manufacture of goods, critical to the production process.
Work in Process
Inventory representing partially completed goods, which include direct labor, material, and overhead costs incurred up to the point of measurement.
Finished Goods
Finished goods are merchandise or products that have completed the manufacturing process and are ready to be sold to customers.
Conversion Cost
The sum of direct labor costs and manufacturing overhead costs, representing the total expense to convert raw materials into finished goods.
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