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Applied Factory Overhead
Represents the allocation of all indirect costs of manufacturing to the goods produced, taking into account factors like indirect labor or materials and utilities.
Continuous Process
A production process that operates without interruption across a series of procedures or steps.
Direct Materials
Definition: Raw materials that can be directly traced to the production of a specific product.
Conversion Costs
The combined costs of direct labor and manufacturing overhead incurred in transforming materials into finished goods.
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