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Indicate which of the following ratios should be used in each situation.Some ratios may be used more than once.Others may not be used at all.
a.solvency
b.profitability
c.market indicator
d.liquidity
Product Cost
The total of costs directly assigned to the production of a product, including raw materials, labor, and manufacturing overhead.
Period Cost
Expenses directly tied to business operations but not a part of the cost of manufacturing or producing goods, often administrative or sales expenses.
Conversion Costs
The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished products.
Prime Costs
The combined costs of direct material and direct labor required to produce a good.
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