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Opportunity Cost
The cost of foregone alternatives, representing the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.
Conversion Costs
Expenses incurred in the process of converting raw materials into finished goods, including labor and manufacturing overhead.
Direct Materials
Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.
Direct Labour
The labor costs directly attributable to the production of goods or services, typically including wages of workers who are physically involved in creation of the product.
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