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Direct Materials
Raw materials that are directly traceable to the production of a specific good or product.
Prime Costs
Refers to the direct costs of manufacturing a product, including direct materials and direct labor.
Conversion Costs
Expenses incurred when transforming raw materials into finished goods, typically including labor and overhead costs.
Direct Materials
Costs of raw materials that are directly involved in the manufacturing of a product and can be easily traced to it.
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