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Variable Cost
Costs that vary directly with the level of production output, such as raw materials and labor costs directly involved in production.
Units
Measurements or quantities of a product or service that are produced or sold.
Sold
The past tense of sell, indicating that a transaction where goods were exchanged for money has been completed.
Conversion Cost
The combination of direct labor and manufacturing overhead expenses, representing the costs required to convert raw materials into finished products.
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