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Clayten Technologies Has Set Up a Sales Team Exclusively to Serve

question 5

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Clayten Technologies has set up a sales team exclusively to serve one of its clients who account for a major share of its business. What is this strategy is an example of?


Definitions:

Job-Order Costing

An accounting method that collects and assigns manufacturing costs to individual units or batches of production, suitable for customized products.

Machine-Hours

A measure of the amount of time a machine is utilized during the production process, often used in cost accounting to allocate expenses.

Job-Order Costing

A costing method used to accumulate costs associated with a specific batch of products or job, allowing for detailed tracking of production expenses.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead incurred.

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