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Activity-Based Costing
A detailed approach to determining the cost of goods or services by allocating overhead costs based on the specific activities undertaken to produce that product or service.
First Stage Allocations
The initial process of assigning overhead costs to different cost pools or departments as part of activity-based costing or other costing methodologies.
Overhead Cost
Fixed and variable expenses associated with operating a business that are not directly linked to creating a product or service, such as administrative expenses and maintenance costs.
Activity-Based Costing
A cost accounting approach that assigns costs to products or services based on the activities involved in their production.
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