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Product Costs
Costs that are incurred to acquire or manufacture a product, including direct materials, labor, and overhead expenses.
Period Costs
Expenses that are not directly tied to the production of goods and are instead accounted for as expenses in the period they are incurred.
Direct Materials
The raw materials directly traced and integral to the finished product in the manufacturing process.
Work in Process
Inventory that includes goods partially through the production process but not yet complete.
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