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Standardizing work through job descriptions and procedures:
Prime Cost
The total cost of direct materials and direct labor incurred in producing goods.
Conversion Cost
The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.
Direct Labor
The wages or salaries paid to workers directly involved in the production of goods or services.
Indirect Material Cost
Costs of materials that are part of the production process but are not directly traceable to a finished product.
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