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Overhead Cost
Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.
Products
Items or goods that are manufactured or refined for sale.
Activity-Based Costing
A costing methodology that assigns the costs of overhead activities to products or services based on their consumption of those activities, aiming to provide more accurate cost information.
Activity Cost Pools
Pools of overhead costs assigned to products and services according to the activities that drive costs.
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