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Conversion Costs
Conversion costs are the costs required to convert raw materials into finished products, including labor and overhead.
Factory Overhead
Expenses related to the operation of a manufacturing plant that are not directly tied to a specific product, including utilities, depreciation, and facility maintenance.
Direct Labor
Costs attributed to the work performed by employees who directly contribute to the manufacturing or production of goods, such as wages of assembly line workers.
Process Costing System
An accounting methodology used to allocate production costs to products based on the process they go through.
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