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The body of the report consists of
Absorption Costing
A costing method that includes all manufacturing costs, both fixed and variable, in the cost of goods sold.
Predetermined Overhead Rate
A rate calculated before the accounting period begins, used to allocate manufacturing overhead costs to individual products based on a certain activity base.
Normal Cost System
A costing system in which overhead costs are applied to a job by multiplying a predetermined overhead rate by the actual amount of the allocation base incurred by the job.
Job Cost Sheet
A document that records the materials, labor, and manufacturing overhead costs assigned to each individual job in production.
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