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Denominator Volume
The activity level used to allocate fixed costs to products or services, affecting the calculation of unit costs.
Budgeted Capacity
The amount of production or activity level planned for a future period, based on budget allocations.
Practical Capacity
The maximum amount of work or output that can be realistically achieved in a specific period under normal operating conditions.
Cost Allocation
The process of assigning indirect costs to different departments, products, or projects based on relevant distribution bases.
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