Examlex
Match the following terms with their definitions.
-Multiplier
Conversion Cost
The sum of labor and overhead expenses incurred to convert raw materials into finished products.
Direct Materials Cost
The cost of raw materials that are directly used in the production of a product.
Factory Overhead Cost
Indirect manufacturing expenses that are not directly tied to the production of goods, like utilities and salary of supervisors.
Direct Labor Cost
The total cost of all labor directly involved in the production of goods or services, excluding indirect labor costs.
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