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Define the following terms: European Economic Community (EEC)
Unit Conversion Cost
The cost incurred to transform raw materials into finished goods on a per unit basis, including both direct labor costs and manufacturing overhead.
Materials Cost
The total expense incurred for materials that are used in the production of goods or services.
Work in Process
Inventory that is in the production process but is not yet completed.
Equivalent Units
Equivalent units are a concept in cost accounting used to apportion costs to partially completed goods, calculating them as if they were finished units.
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