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Overhead Applied
The portion of manufacturing overhead costs assigned to each unit of production, based on a predetermined rate.
Activity-Based Costing
A method of accounting that assigns costs to products or services based on the activities they require.
Traditional Costing Method
A costing system that applies overhead costs to products based on a predetermined overhead rate, without regard to the actual activities that lead to those costs.
Unit Product Cost
The total cost associated with producing a single unit of output, including both variable and fixed costs.
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