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In right triangle ABC , . If
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.
Overhead Cost
Expenses related to the operation of a business that cannot be directly tied to a specific product or service, such as rent, utilities, and administrative salaries.
Activity-Based Costing
A costing method that assigns costs to products and services based on the activities and resources that go into producing them, aiming for more accurate product costing.
Activity Rate
A rate that is used to apply costs in activity-based costing, linking the cost of business activities to the products or services that require these activities.
Batch Setup
The process and associated costs of preparing equipment and facilities for a specific batch of production, often involving setup time and expenses.
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