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Which of the following is NOT an advantage of factoring?
Variable Overhead
Costs of production that fluctuate with the level of output, such as utility expenses for machinery, which increase with more extensive production.
Direct Materials
Direct materials are raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the product's cost.
Direct Labor-Hours
The full sum of time spent by employees directly engaged in the process of creating products.
Variable Overhead
Costs that change with production volume but are not directly tied to specific units, such as utilities for the manufacturing plant.
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