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Conversion Costs
The sum of direct labor and manufacturing overhead costs required to convert raw materials into finished goods.
Process Costing
An accounting methodology used for homogenous goods, tracking and accumulating direct and indirect costs associated with a continuous production process.
Conversion Costs
Costs incurred during the transformation of raw materials into finished goods, typically including direct labor and manufacturing overhead.
Process Costing
A costing system used in industries where goods are produced in a continuous process, costs are accumulated by process or department, and averaged over the units produced.
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