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'Rites of passage' often begin with a symbolic:
Direct Materials Cost
The cost of raw materials that can be directly traced to the production of goods, considered a variable cost in manufacturing.
Inventories
Assets held for sale, or in the process of being produced for sale, or to be used in the production process.
Overapplied Manufacturing Overhead
This occurs when the allocated manufacturing overhead cost is more than the actual manufacturing overhead costs incurred.
Underapplied Manufacturing Overhead
This occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, leading to a cost variance.
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