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Time-Driven Activity Rate
An accounting method that assigns costs to products based on the time resources are consumed in producing the product.
Second-Stage Allocation
The process by which activity rates are used to apply costs to products and customers in activity-based costing.
Activity-Based Costing
A costing methodology that assigns expenses to products and services based on the resources they consume.
Overhead Costs
Indirect costs not directly traceable to a specific product or job, including expenses such as rent, utilities, and management salaries.
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