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Overapplied
A term used in accounting when the allocated overhead costs are more than the actual overhead costs incurred.
Underapplied
Refers to the situation where allocated overhead costs are less than the actual overhead costs incurred.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including labor, materials, and manufacturing overhead.
Job-Order Costing System
An accounting method used to track costs and evaluate the profitability of individual jobs or orders by accumulating the costs associated with a specific batch of products.
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