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11-67 Which of the following refers to restrictions in loan and bond agreements that encourage or forbid certain actions by the borrower?
Conversion Costs
The combined costs of direct labor and manufacturing overheads, which are incurred to convert raw materials into finished products.
Equivalent Units
A concept used in process costing that converts partially completed goods into a number of fully completed units.
Weighted-Average Method
A method of inventory valuation that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a specific product and included in its cost.
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