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Manufacturing Overhead
Expenses related to the manufacturing process that are not directly tied to specific products, such as salaries of supervisory staff and factory maintenance.
Direct Materials
Materials that are traceable to the production of specific goods or services and included in the cost of those goods or services.
Direct Labour
is the cost associated with workers who are directly involved in the production of goods or services, such as wages for assembly line workers.
Prime Cost
The sum of direct materials and direct labor costs that are directly attributable to the production of a product.
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