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After exploring much of the West, geologist John Wesley Powell advised in 1874 that
Conversion Cost
The sum of labor costs and overhead costs used to convert raw materials into finished products.
Equivalent Unit
A measure used in cost accounting to express the amount of materials or labor in terms of the number of finished units they represent.
Process Costing
An accounting methodology used for homogeneous products, which calculates the cost of a product at various stages of production by spreading the total costs over the total units produced.
Work In Process
Refers to materials that have been partially completed in production but are not yet finished goods in manufacturing.
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