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In heavily forested areas, the trees reduce evaporation and disrupt the normal water cycle.
Variable Manufacturing Overhead
Variable manufacturing overhead consists of manufacturing costs that fluctuate with production volume, such as indirect materials and utility costs.
Fixed Manufacturing Overhead
The sum of all consistent, non-variable costs associated with manufacturing, including salaries of supervisors and rent of the facility.
Job-Order Costing System
An accounting method that tracks the costs associated with producing a specific batch of products or a specific job.
Predetermined Overhead Rate
The rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.
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