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The CHRONOLOGICAL arrangement organizes main points according to their location,such as front-to-rear,north-to-south.
Manufacturing Costs
Expenses directly tied to the production of goods, including labor, materials, and manufacturing overhead.
Cost of Goods Manufactured
The total production cost of goods completed and moved to finished goods inventory within a specific period, including materials, labor, and overhead.
Factory Overhead
The indirect manufacturing costs that are not directly tied to the production of goods, such as maintenance, utilities, and salaries for support staff.
Depreciation
Depreciation is the accounting method of spreading out the cost of a tangible asset over its useful life, recognizing the asset's gradual loss of value over time.
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