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Equivalent Units
A concept in cost accounting used to express the amount of materials, labor, and overhead a company has put into production in terms of fully finished units.
First-In, First-Out Method
An inventory valuation method where the cost of the earliest goods purchased is the first to be recognized in determining cost of goods sold.
Equivalent Units
A concept used in process costing that converts partially completed units into a number of fully equivalent units for the purposes of accounting.
Direct Materials
Materials that can be directly linked to the production process of a product and are essential components of the final product.
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