Examlex
Write using positive rational exponents.
Direct Materials
Raw materials that are directly used in the production of a product and can be easily traced to the finished product.
Conversion Costs
Sum of labor costs and overhead expenses associated with the transformation of raw materials into finished goods.
First-In
Typically part of the phrase "First-In, First-Out" (FIFO), a method used to assign costs to inventory on the basis that the first items entered into inventory are the first sold.
Equivalent Units
A term used in cost accounting to denote a conversion measure that expresses the amount of work done on partially completed units in terms of fully completed units.
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