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Direct Manufacturing Cost
The total cost directly involved in the manufacturing of a product, including direct materials and direct labor but excluding overhead.
Indirect Manufacturing Costs
Expenses related to the production process that are not directly tied to the manufacturing of products, such as maintenance and factory overhead.
Gross Margin
The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.
Variable Cost
Charges that fluctuate in accordance with the degree of business operations or output levels.
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