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Viscous coupling differentials send power to the axle or wheel that has the least traction.
Conversion Costs
Costs incurred during the manufacturing process to convert raw materials into finished goods, composed of direct labor and manufacturing overhead.
Direct Materials
Raw materials that can be directly attributed to the production of specific goods or services and are a significant component of manufacturing costs.
Equivalent Unit
A concept in cost accounting used to apportion costs to partially completed goods, allowing for a more accurate calculation of the cost per unit.
Raw Materials Inventory
Raw Materials Inventory accounts for the cost of materials that have been purchased but not yet processed or used in production on the balance sheet.
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