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The reason for the color coded terror alert system in the U.S. is:
Conversion Costs
Conversion costs are the total costs required to convert raw materials into finished products, typically including both direct labor and manufacturing overhead.
Beginning Work
Refers to the value of the work-in-progress at the start of an accounting period.
Assembly Department
A section within a manufacturing facility where components are assembled into final products.
Process Cost System
An accounting system used to track and allocate costs of production by processes or departments, commonly used in industries where goods are produced in a continuous process.
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