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According to the Text,which of the Following Terms Is Incorrectly

question 34

Multiple Choice

According to the text,which of the following terms is incorrectly used,misleading,and should be avoided?


Definitions:

Direct Labor

The wages and related costs of employees who are directly involved in the production of goods or services.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods, excluding indirect materials like maintenance supplies.

Finished Goods Inventory

Finished products awaiting sale but still not purchased.

Overhead Rate

The ratio used to allocate indirect costs to products or services, based on a specific measure such as labor hours or machine hours.

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