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Raw Materials Purchase
The acquisition of basic materials needed for the production of goods, a critical input in the manufacturing process.
Raw Materials Inventory
The stock of basic materials that are required to manufacture goods, held by a company awaiting to be used in the production process.
Raw Materials Purchases
Refers to the total cost of all raw materials bought by a company over a specific period for use in its production process.
Standard Cost System
A cost accounting system that uses standard costs for materials, labor, and overhead to control and reduce costs.
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