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Production Departments
Divisions or areas within a manufacturing facility where specific types of products or components are produced.
Multiple Production Department Rates
A method of applying overhead to products in which overhead costs are first directly traced or distributed to support and production departments.
Overhead Costs
Indirect expenses related to running a business that are not directly tied to producing a product or service, such as rent and utilities.
Support Department Costs
Expenses incurred by service departments that assist other units of a business, not directly involved in production.
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