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Figure 14- 3 ANS Pathway
Use Figure 14- 3 to answer the following questions:
-Identify the structure labeled "2."
Overhead Allocation Methods
Techniques used to assign indirect costs to products, services, or departments, helping in accurately reflecting production costs.
Overhead Rate
Refers to the cost of running a business that cannot be directly attributed to a specific product or service, often expressed as a percentage of labor or material costs.
Activity-based Costing
A costing method that assigns overhead and indirect costs to specific activities, providing more accurate product costing.
Departmental Overhead Rate
A rate used to allocate overhead costs to specific departments, based on criteria like department size, expenditure, or machine hours used.
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