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Manufacturing Overhead
All indirect costs associated with manufacturing beyond direct materials and direct labor, such as factory rent, utilities, and equipment depreciation.
Cost-Driver Identification
The process of determining the activities or factors that directly cause a cost to increase or decrease, important for accurate cost allocation.
Cause-And-Effect Relationship
The principle that an action (cause) results in a certain response or outcome (effect), often used in scientific and social studies.
Cost Pools
Groupings of individual costs typically according to function or department, allowing for more effective overhead cost allocation.
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