Examlex
The HPA system does NOT include:
Dollar-based Cost Drivers
Factors that cause a change in the cost of an activity, measured in monetary terms, such as labor hours, machine hours, or raw material quantities.
Cost Allocation Process
The method by which overhead or indirect costs are systematically assigned to various cost objects like products, services, or departments.
Accounting System
A systematic process of recording, summarizing, and reporting the financial transactions of a business or organization.
Variable Costing
An accounting method that only includes variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.
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