Examlex
Why are investors interested in free cash flow?
Direct Materials
Raw materials that can be directly traced to the production of a specific product and are an integral part of the finished product.
Transportation Out
Transportation out refers to the costs associated with delivering goods from a seller to a buyer, often recognized as a selling expense.
Product Cost
The total expense incurred to produce and deliver a product, including direct materials, labor, and overhead.
Period Cost
A type of expense that is not directly tied to the production process and is expensed in the period it is incurred.
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