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Sam is eager to start a local magazine that will include articles about health and fitness and provide a place for local health and fitness professionals to advertise their services. Which of the following does he NOT need to include in his business plan?
Activity-Based Costing
A costing technique that determines the cost of a product based on the activities involved in its production and the extent to which the product uses those activities.
Manufacturing Overhead
Costs related to the production process that are not directly tied to the product, such as rent for the manufacturing space, utility costs, and salaries for manufacturing management.
Traditional Costing System
A costing method that assigns manufacturing overhead costs to products based on volume metrics such as machine hours or labour hours.
Direct Labor-Hours
The entirety of hours committed by personnel directly involved in the process of production.
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