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For a given return on assets,the lower is bank capital
Surplus
The amount by which a company's income exceeds its spending, or in a broader sense, an excess of assets over liabilities.
Conversion Costs
The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.
Direct Labor Cost
The total cost of all the labor directly involved in the production of goods or services, excluding indirect expenses such as supervisor salaries and utilities.
Factory Overhead Cost
Indirect manufacturing costs not directly tied to the production of goods, such as utilities and rent for the production facility.
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