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Direct Materials Costs
The expenses for raw materials that are directly used in the production of a product.
Activity Cost Pools
A method in activity-based costing that aggregates all indirect costs associated with a particular activity, allowing for more precise allocation of overheads to products or services.
Organization-Sustaining Activities
Activities that are carried out regardless of which customers are served, which products are produced, how many batches are run, or how many units are made.
First-Stage Allocations
The process of assigning overhead costs to different departments or cost pools as a first step in allocating costs to individual products or services.
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