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Machine Hours
A measure of production time, calculated as the total hours that a machine is operated during a specific period.
Direct Labor Time
The amount of time spent by employees directly working on producing a product or service.
Overhead Cost
General, administrative, and selling expenses that are not directly tied to any specific product or service but are necessary for running the business.
Allocation Base
A measure or statistic that is used to distribute costs among different departments, projects, or products.
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