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Process Inventory
Inventory that consists of items that are in various stages of being processed in a manufacturing environment but are not yet completed products.
Cost System
A method for collecting, recording, and analyzing costs related to a specific way of managing expenses within an organization, project, or process.
Cost Per Equivalent Unit
A calculation used in process costing that divides total manufacturing costs by the number of units produced, adjusting for unfinished units.
Conversion Costs
The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.
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