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Production Process
The sequence of operations or activities involved in converting raw materials into finished goods.
Assigning Costs
Assigning costs involves allocating expenses to different cost objects such as products, services, or departments for accounting and decision-making purposes.
Cost of Goods Manufactured
The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead costs.
Manufacturing Overhead
This encompasses costs related to the manufacturing process that are not directly associated with the products being manufactured, such as equipment depreciation and factory rent, essential for understanding total production costs.
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