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For the most part, there is a negative correlation between:
Incremental Costs
Costs that change as a result of a new policy, project, or decision, essentially the difference in total costs between two alternatives.
Direct Materials
Raw materials that can be directly attributed to the production of finished goods.
Finished Units
Products that have completed the manufacturing process and are ready for sale or distribution to customers.
Direct Labor
The wages paid to workers directly involved in the production of goods or services.
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