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Activity-Based Costing
A costing method that identifies the activities in an organization and assigns the cost of each activity according to the actual consumption by each.
Manufacturing Overhead
includes all manufacturing costs that are not directly related to the production of goods, such as factory rent, utilities, and maintenance expenses.
Unit Product Cost
The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.
Predetermined Overhead Rate
A rate used to allocate overhead costs to products or services, calculated before the actual costs are known, based on estimated costs.
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