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Inventory
An asset that represents the total amount of goods and or materials a company holds for sale or production in the normal course of business.
Equivalent Units
A concept in process costing that converts partially completed units into a number of equivalent full units.
Direct Method
An approach used in cost accounting or cost allocation in which costs are directly assigned to cost objects, such as departments or products, without any allocation of indirect costs.
Service Department
A division within a company that supports other departments by providing internal services or assistance.
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