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Direct Materials
Raw materials that are directly traceable to the manufacturing of a specific product and included in the direct costs of production.
Variable Overhead
Costs that vary with the level of production or business activity, such as utilities or indirect materials.
Direct Material
Raw materials and components that are directly incorporated into a finished product and can be easily traced to the product.
Direct Labor-Hours
A measure of the hours worked by employees directly involved in the production process.
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