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Conversion Costs
The sum of labor costs and manufacturing overhead costs required to convert raw materials into finished products.
Factory Overhead
Indirect manufacturing costs that cannot be directly attributed to specific units produced, such as maintenance, utilities, and salaried personnel expenses.
Direct Labor
The expenditure on the pay of staff who are directly participating in the creation of products or services.
Factory Overhead Cost
Expenses related to the production process that are not directly tied to a specific product, including costs for utilities, maintenance, and factory equipment depreciation.
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