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If regression analysis estimates that assets exceed liabilities and equity, the firm will require external sources of finance.
Cost Pool
A collection of indirect costs grouped together, typically for the purpose of allocating them to different products, services, or departments.
ABC
Activity-Based Costing; a method of assigning overhead and indirect costs to specific products or projects based on their use of activities.
Activity
Any action or operation within a business that incurs costs or generates revenues.
Plantwide Overhead Rate
An overhead allocation rate that applies uniformly across an entire manufacturing plant, instead of being divided by department or activity.
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