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Cost Assignment
The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.
Plantwide Overhead Rate
A single overhead rate calculated by dividing total factory overhead by the total amount of a chosen allocation base, applied uniformly across all production.
Activity-based Costing (ABC)
A costing method that assigns overhead and indirect costs to related products and services based on their usage.
Overhead Rates
The ratio used to allocate indirect costs to products or services, usually based on direct labor hours, machine hours, or direct labor cost.
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