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Job-Order Costing System
An accounting method that tracks the costs associated with producing a specific batch of products or a specific job.
Predetermined Overhead Rate
The rate used to allocate manufacturing overhead to products, calculated before the period begins based on estimated costs and activity levels.
Direct Labor-Hours
A measure used in accounting to allocate costs, referring to the total hours worked by employees directly involved in the manufacturing process.
Job-Order Costing System
A cost accounting system that accumulates costs incurred according to each job or project, suitable for industries where goods or services are produced on a custom basis.
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