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Direct Labor
Direct labor refers to the work of employees directly involved in the manufacturing of products.
Direct Material
Raw materials that are consumed in the manufacturing process, directly incorporated into the finished product.
Variable Manufacturing Costs
Expenses that change in proportion to the manufacturing output, including costs related to direct labor, materials, and manufacturing overhead that fluctuates with production volume.
Operating Income
Earnings from a company's core business operations, excluding expenses and revenues from non-operating activities.
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