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Activity Rates
These are costs assigned to cost objects based on the activities those objects require, often used in activity-based costing.
Traditional Costing System
A costing methodology that assigns costs to products based on direct costs like materials and labor, and allocates overhead costs based on a predetermined rate.
Activity-Based Costing System
An accounting method that assigns costs to products based on the activities they require for production.
Batch-Level Costs
Costs that are incurred for every batch produced, regardless of the size of the batch, such as setup costs or inspection costs.
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