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Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources, providing more accurate product cost information.
Activity Cost Pools
Categories of overhead costs grouped together based on similar activities in an activity-based costing system.
Customer Margin
The profit generated from a specific customer, calculated by subtracting the costs associated with serving that customer from the revenue earned from them.
Total Overhead Cost
The sum of all indirect costs involved in operating a business, including administrative and managerial expenses.
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