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Linwood is the IT manager of a small organization, Turtle Designs, with less than 50 employees. Caroline, his boss, asks him to set up a computer that will act as the central repository for the company's data. Linwood estimates the costs and suggests using an Internet-based service instead. What is Linwood recommending in this scenario?
Assembling
The process of combining components or elements to form a complete item or system.
Unit-level Activity
Activities that are performed each time a unit is produced, directly associated with the production of units.
Manufacturing Overhead Costs
Expenses related to the production process that are not directly tied to the product, such as rent, utilities, and salaries of managers.
Activity-based Costing
A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
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