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Fixed Manufacturing Overhead
Costs associated with the production process that do not vary with the level of output, including costs like rent, salaries of permanent staff, and machinery depreciation.
Job-Order Costing System
An accounting method that assigns costs to specific production batches or jobs, used for customized orders.
Predetermined Overhead Rate
An estimated rate used to apply manufacturing overhead to products or job orders, based on a related activity base such as machine hours or direct labor hours.
Variable Manufacturing Overhead
Costs that vary with the level of production output, such as utilities for machinery, that are associated with the manufacturing process.
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