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What Are the Components of the Schedule of Cost of Goods

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What are the components of the schedule of cost of goods manufactured? Describe each component.


Definitions:

Total Variable Cost

The sum of all costs that vary with the level of output, including expenses like materials and labor, but not fixed costs.

Output Level

Refers to the quantity of a product or service produced by a company or an economic sector within a specific period.

Average Product

The output per unit of input, calculated by dividing total production by the total quantity of input.

Labor

The work performed by humans that is used in the production of goods and services.

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