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Production Efficiency
The level of output that a production process achieves relative to its input resources, with higher efficiency indicating less waste and more value creation.
FIFO Method
First-In, First-Out, an inventory valuation method where the costs of the oldest inventory items are recorded as sold first.
Conversion Activity
Processes that transform raw materials into finished products, including manufacturing, assembling, and packaging operations.
Weighted Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale.
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