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Inflationary and recessionary gaps are closed by self-correcting adjustments that shift:
Actual Overhead
The actual amount of overhead costs incurred by a company during a specific period.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products by estimating overhead costs in advance.
Automated Manufacturing
The use of computer-controlled machinery and robotics in the production process to increase efficiency and reduce human error.
Activity Base
A measure used to assign costs to cost objects based on their use of activities, often used in activity-based costing.
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