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Gabriel and Jim were involved in a car accident and they both suffered a broken bone.Gabriel told Jim,"Hey at least we only broke a few bones - we could've died!" Jim's response to Gabriel was "Yes,but I'm now thinking about how I can be a better driver so that I never get in an accident again." Gabriel's statement reflects a(n) ________ counterfactual and Jim's response reflects a(n) ________ counterfactual.
Direct Labor-Hours
The total hours worked by employees directly involved in the manufacturing process, often used as a basis for assigning costs to products.
Manufacturing Overhead
Indirect factory-related costs that support the production process but cannot be directly traced to specific products, such as maintenance and utilities.
Traditional Costing System
A cost accounting method that assigns overhead costs to products based on a predetermined overhead rate and actual levels of a cost driver.
Overhead Cost
Indirect expenses related to the general operation of a business, such as rent, utilities, and administrative salaries, not directly tied to any specific product or service.
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