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Overhead Assigned
The allocation of indirect costs or overhead to specific cost objects, such as products or jobs, based on a predetermined formula.
Traditional Costing
A cost accounting method that assigns manufacturing overhead costs to products based on volume-related measures.
Overhead Applied
The portion of estimated overhead costs that is allocated to each unit of production or activity based on a predetermined rate.
Activity-Based Costing
An accounting method that assigns costs to products and services based on the resources they consume. This approach seeks to provide more accurate cost information by attributing overhead costs to specific activities.
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