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The Method of Allocating Costs to Products by Averaging Costs

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Short Answer

The method of allocating costs to products by averaging costs over large numbers of nearly identical products


Definitions:

Retail Price

The price at which goods or services are sold to the end consumer.

Commission Rate

The percentage or fixed payment associated with a transaction or sale that is given to the intermediary or salesperson.

Commission Rate

The percentage of a sale price that is paid to the salesperson as a reward for making the sale or dealing.

Freight

Goods transported in bulk by truck, train, ship, or airplane.

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