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A study by management consulting firm McKinsey identified the potential emergence of a new global industry structure as a key trend to watch in the coming years.Discuss this trend and what it means for marketers.
Variable Manufacturing Overhead
Costs in manufacturing that vary with the level of production output, such as utilities for machinery.
Fixed Manufacturing Overhead
The set of costs associated with the production process that do not change with the level of production, including rent, salaries, and insurance.
Job-Order Costing System
A cost accounting system that accumulates manufacturing costs separately for each job or batch.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to individual products or job orders, based on a pre-established criterion such as direct labor hours.
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