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Direct Material Costs
The costs of raw materials that can be directly attributed to the production of a specific product.
Abnormal Spoilage
This is the waste or loss of production materials that exceeds the normal level expected during the manufacturing process.
Unit Cost
The cost incurred to produce, store, and sell one unit of a product, calculated by dividing the total cost by the number of units produced.
Inventory Valuation
The method used to assign a monetary value to a company's inventory, taking into account the costs of acquiring, producing, and storing the products.
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