=+In this industry, it is typical to charge the papermaking operation with the cost of direct materials,

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=+In this industry, it is typical to charge the papermaking operation with the cost of direct materials, which is a mixture of virgin materials and broke. Broke has a much lower cost than does virgin pulp. Therefore, the more broke in the mixture, the lower the average cost of direct materials to the department. Papermaking managers will frequently comment on the importance of broke for keeping their direct materials costs down.

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Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

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