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Activity-Based Costing
An approach to costing that recognizes activities within an organization and distributes their costs across all products and services according to the real consumption of each.
Product Margin
The difference between the selling price of a product and its production costs, indicating the profitability of a product.
Activity-Based Costing
A method of allocating costs to products and services based on the activities that contribute to those costs instead of on traditional measures like machine hours.
Overhead Cost
General expenses related to the operation of a business that cannot be directly attributed to a specific product or service.
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