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Refer to the exhibit. What is occurring in this packet capture?
Indirect Cost
Costs not directly traceable to a product, department, or project, such as administration, rent, and utilities.
Manufacturing
The process of converting raw materials, components, or parts into finished goods that meet a customer's expectations or specifications.
Factory Rent
Expenses incurred for leasing a premises to use as a manufacturing or production facility.
Prime Costs
The combined direct costs of raw materials and labor that are directly attributable to the production of a product.
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