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Actual Activity
A measure of the real amount of work performed or production completed in a specific period.
Activity-based Costing
A costing methodology that assigns costs to products or services based on the activities required to produce them, aiming to more accurately reflect the consumption of resources.
Manufacturing Overhead
All indirect costs associated with manufacturing, such as utilities, maintenance of equipment, and factory supplies, not directly attributable to specific product units.
Activity Cost Pools
Aggregations of all the costs associated with a specific activity, used in activity-based costing to allocate costs more accurately.
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