Examlex
Simplify by combining like terms.
Capacity
The maximum level of output that a company can sustain to make a product or provide a service under normal conditions.
Activity-Based System
A method in accounting that allocates costs to specific activities based on their use of resources, aimed at providing more accurate cost information.
Non-Volume-Based Costs
Costs that do not vary directly with the volume of production or sales, often encompassing fixed costs like rent or salaries.
Volume-Based Costs
Costs that vary directly with the level of production or sales volume, such as direct materials and direct labor, contrasting with fixed costs that remain constant regardless of volume.
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