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Direct Labor
The wages paid to workers directly involved in the production of goods or services.
Overhead
The ongoing operational costs not directly attributable to the creation of a product or service.
General Journal
A comprehensive journal used in bookkeeping to record all types of accounting transactions before their transfer to specific accounts in the ledger.
Predetermined Rate
A rate established before the start of a period for the purpose of applying overhead costs to products or services, based on estimated costs.
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