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Activity-Based Costing
A method of cost accounting that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Overhead Cost Per Unit
The allocation of total overhead costs to individual units of production, providing a per-unit cost of overhead expenses.
Expected Activity
An estimate of the volume of production or service levels a company anticipates, used for budgeting and planning.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to specific activities and products based on their usage of resources.
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