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Termination Pay Is Payment to an Employee in Lieu of Notice

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Termination pay is payment to an employee in lieu of notice when terminated.


Definitions:

Machine Hours

A measure of production time, representing the total hours that machinery is operated in the manufacturing of a product.

Number Of Employees

The overall number of people working for a firm, encompassing both those in full-time and part-time positions.

Step-down Method

A cost allocation method used in accounting to distribute overhead costs to various departments or products.

Machine Hours

The total number of hours that machinery is operational during a certain period.

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