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What are the advantages and disadvantages of each approach?
Raw Materials Inventory
The stock of primary materials used in the manufacturing process before they are converted into finished goods.
Factory Labor
The direct and indirect labor costs incurred in manufacturing products, including wages and benefits of workers involved in production.
Total Manufacturing Costs
Sum of all costs directly involved in the manufacturing of a product, including raw materials, labor, and overhead expenses.
Direct Materials Used
The raw materials directly traced to the manufacturing of a product and included in its cost.
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