Examlex
In which of the following do we live?
Overhead Cost
Expenses related to the operation of a business that cannot be directly tied to a specific product or service.
Activity-Based Costing
A costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Overhead Cost
Expenses not directly tied to production but necessary for running the business, such as rent, utilities, and salaries for administrative staff.
Activity-Based Costing
An accounting method that apportions overhead and incidental costs to the respective products and services based on the specific activities involved.
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