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Activity-Based Costing
A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.
Unit Product Cost
The total expense incurred to produce, store, and sell one unit of a product.
Traditional Costing
A costing method that allocates overhead based on a single predetermined rate.
Activity-Based Costing
A costing methodology that assigns overhead and indirect costs to specific activities, improving accuracy in product costing by identifying cost drivers.
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