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Careful consideration of Head Start indicates that:
Overhead Cost
All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production staff.
Activity Rates
Are used in activity-based costing to allocate costs to products or services based on the activities required for their production or delivery.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities, improving accuracy in product costing.
Overhead Cost
Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.
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