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Factory Rent
Refers to the cost incurred for renting a facility or space for manufacturing operations, a common type of fixed expense for manufacturers.
Direct Labor
The price of paying staff who are directly participating in the manufacturing of goods or provision of services.
Direct Materials
Basic substances used in production that can be directly integrated and precisely identified in the final product.
Factory Overhead
Indirect costs associated with manufacturing, including expenses such as rent, utilities, and maintenance that are not directly tied to the production of goods.
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