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Activity Cost Pools
Categories of overhead costs grouped together based on similar activities in an activity-based costing system.
Customer Margin
The profit generated from a specific customer, calculated by subtracting the costs associated with serving that customer from the revenue earned from them.
Total Overhead Cost
The sum of all indirect costs involved in operating a business, including administrative and managerial expenses.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities, providing a more accurate reflection of the costs associated with producing specific products or services.
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