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Both the American Association on Intellectual and Developmental Disabilities and DSM-5 recognize that
Direct Materials
Materials that are directly used in the manufacture of end products.
Direct Labor
Wages paid to employees who are directly involved in the production of goods or services.
Factory Overhead
All indirect costs associated with manufacturing, excluding direct labor and direct materials.
Job Cost Sheet
A document that tracks the materials, labor, and overhead costs associated with a specific job in job order costing.
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