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If property owners fail to pay their taxes in a timely fashion, this can create a first lien on the mortgaged property. In order to protect against this, lenders often require that borrowers add what fraction of their estimated tax bill to their required monthly mortgage payments?
Direct Materials
Direct materials are raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of its production cost.
Direct Labor
The labor costs directly tied to the production of goods, including wages of workers actively engaged in manufacturing.
Variable Costs
Costs that change in proportion to the level of production or sales activity.
Sunk Cost
A cost that has already been incurred and cannot be recovered or changed.
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