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Daniela Almendarez
on Nov 12, 2024

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Manufacturing overhead combined with direct materials is known as conversion cost.

Conversion Cost

The total cost of converting raw materials into finished products, typically including labor and overhead expenses.

Direct Materials

Raw materials that can be directly traced to the production process of a specific good or service.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to a specific product, such as utilities, rent, and management salaries.

  • Acquire knowledge about the principle of manufacturing overhead and its utilization in cost accounting.
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sonali guptaNov 12, 2024
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