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Fixed Component
The portion of a cost or expense that remains constant regardless of the level of production or business activity.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a chosen activity base.
Variable Component
A portion of a cost or expense that varies directly with the level of activity or production volume.
Fixed Component
The portion of total costs that remains constant regardless of the level of activity or output.
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