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Process Costing
Process costing is a cost accounting method used for homogeneous products, where the costs are assigned to batches of products instead of individual units.
Conversion Costs
The sum of labor and overhead expenses required to convert raw materials into finished products.
Equivalent Units
Equivalent Units are a concept in cost accounting used to represent the amount of work done during a period, expressed in fully completed units of output.
Cost Reconciliation
The process of ensuring that the costs recorded in the accounting system match the actual expenses incurred, especially in a manufacturing or production process.
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