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In order to reduce absenteeism, the director of HR decides to set up a program whereby every employee receives a lottery ticket for each month of perfect attendance. In July, a plant-wide lottery will be held with prizes worth up to $100. Which of the following concepts has the director of HR adopted?
Conversion Costs
The combined costs of direct labor and manufacturing overheads, representing the expenses to convert raw materials into finished goods.
Equivalent Units
Equivalent units are a concept in cost accounting used to express the amount of materials or labor needed to produce a unit of output in a process that is partially complete.
Manufacturing Activity
The process of converting raw materials into finished goods through various operations such as assembling, machining, or processing.
Materials
The substances or components used in the manufacturing of products or provision of services.
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