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Which of the four implications above are the most important for the entrepreneur and which is the easiest and fastest for that person to implement?
Indirect Costs
Costs that are not directly traceable to a single product or operation, such as overhead.
Opportunity Costs
The potential benefit missed out on when choosing one alternative over another.
Conversion Cost
Conversion cost is the sum of direct labor and manufacturing overhead costs incurred to convert raw materials into finished goods.
Product Cost
The expenses incurred to create a product, including direct materials, direct labor, and manufacturing overhead.
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