Examlex
The RDAs were originally designed primarily to:
Absorption Costing
A method in accounting that involves integrating all costs related to manufacturing, namely direct materials, direct labor, and all variable and fixed overhead expenses, into the pricing of a product.
Fixed Overhead
Costs that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.
Period Cost
Any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets. A non-manufacturing cost that is expensed in the period in which it is incurred.
Special Order
A special order refers to a one-time or unusual request from a customer that can require unique production or ordering requirements outside of normal operations.
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