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Percentage Of Completion
An accounting method used to recognize revenue and expenses of long-term contracts as a function of the estimated completion percentage of the project.
Direct Materials
Direct materials are the raw materials that are directly incorporated into a finished product and are a significant portion of the total production cost.
Equivalent Unit
A measure used in cost accounting to represent a portion of a product's costs when it is partially completed.
Finished Goods Inventory
The stock of completed products ready for sale at the end of an accounting period.
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