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Raw Materials
The basic materials from which products are made, which have not yet been processed or used in manufacturing.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product.
Indirect Materials
Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used on machinery.
Manufacturing Overhead
All indirect costs associated with manufacturing a product, such as utilities, rent, and salaries for employees not directly involved in production.
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