Examlex
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Direct Materials
Raw materials that can be directly identified and easily traced to the manufacturing of finished goods.
Factory Overhead
Refers to all indirect costs associated with manufacturing, including but not limited to utilities, rent, and equipment maintenance, which are not directly tied to the production of specific goods.
Manufacturing Process
A series of steps involving the conversion of raw materials into finished goods, including design, fabrication, and assembly operations.
Process Cost System
An accounting method used to assign production costs to products and services based on the processes they go through in the production cycle.
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