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Average Cost Method
An inventory valuation method that calculates the cost of goods sold and ending inventory value based on the average cost of all similar items in inventory.
Direct Materials
Raw materials that can be directly traced to the production of goods in the manufacturing process.
Lean Manufacturing
A methodical procedure designed to cut down on waste in a factory setup without reducing work efficiency.
Manufacturing Cells
Groups of machines and/or workstations arranged closely together to manufacture similar products or components, enhancing production efficiency and flexibility.
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