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What is an error in the air lock technique?
Reciprocal Method
An accounting technique used for allocating service department costs to operating departments by incorporating the mutual services provided among all service departments.
Support Departments
Units within an organization that provide essential services or assistance to other units rather than producing goods or services directly.
Cost Equations
Mathematical formulas used to calculate the total cost of producing goods or services, often incorporating variable and fixed costs.
Absorption Costing
A method of accounting that encompasses all costs associated with manufacturing (such as direct materials, direct labor, as well as both variable and fixed overhead expenses) in the pricing of a product.
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