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The incorporation doctrine involves
Direct Materials
The raw materials that can be physically and directly associated with manufacturing the end product.
Factory Overhead
All indirect costs associated with the production process, such as salaries for supervisors and costs for utilities, not directly attributed to specific units of products.
Mixed Cost
A cost that contains both variable and fixed cost elements, making it partially dependent on the level of output or activity.
Fixed Cost
Expenses that do not change with the level of production or sales, such as rent or salaries.
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