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Which of the following reduces the magnitude of the expenditure multiplier?
Indirect Materials
Materials used in the production process that cannot be directly linked to specific products or jobs, such as lubricants and cleaning supplies for machinery.
Production
The act of developing, expanding, producing, or enhancing products and services.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a certain activity base.
Direct Materials
Raw materials that are traceable directly to the finished product in the manufacturing process.
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