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A firm would investigate external distribution services if
Direct Labour-Hours
A measure of the total time individuals spend working directly on manufacturing a product.
Expected Activity
This refers to the anticipated level of use or production volume a company plans for in a given period.
Activity Cost Pools
Groupings of individual costs associated with distinct activities in the process of costing, often used in activity-based costing.
Overhead Cost
The ongoing expense of operating a business that is not directly associated with the production of goods or services, such as rent, utilities, and office supplies.
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