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Direct Materials
Raw materials that can be directly traced to and are integral to the finished product.
Raw Materials
Basic substances in their natural, modified, or semi-processed states used as inputs for production.
Predetermined Overhead
An estimated rate used to assign overhead costs to products or services based on a planned amount of overhead and a planned allocation base.
Direct Labor
Workers who are directly involved in the manufacturing of goods or provision of services, whose labor costs are directly attributed to the product or service.
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