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Net income does not appear in the numerator of the
Forming
The process of shaping material into a desired geometry, often through methods like forging, molding, or casting.
Customizing
Modifying or adapting a product, service, or process to meet specific customer needs or preferences.
Manufacturing Overhead
All manufacturing costs aside from the costs of direct materials and direct labor, encompassing expenses such as maintenance, utilities, and rent of the production facility.
Predetermined Overhead Rates
An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a selected activity base.
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