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Manufacturing Overhead
Indirect factory-related costs that are incurred when producing a product, such as utilities, maintenance, and quality control.
Indirect Materials
Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used in a factory.
FIFO Method
An inventory valuation method where the first items placed in inventory are the first ones sold or used out; FIFO stands for “First In, First Out”.
Work In Process
This term is often used interchangeably with Work In Progress, denoting goods that are partially completed in the manufacturing process.
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