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Fixed Overhead
Regular, unchanging costs incurred by a business, regardless of its level of production or sales, such as rent or salaries.
Direct Labor
The labor costs directly associated with the production of goods or services, such as wages for workers who are involved in the manufacturing process.
Raw Material
Basic materials used in the production process, which are transformed into finished goods.
Property, Plant, and Equipment
Long-term assets, including land, buildings, machinery, and vehicles, used in the operation of a business.
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