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Manufacturing Overhead
Expenses tied to the production process that do not include direct labor or materials are known as indirect costs.
Variable Costs
Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor.
Fixed Costs
Costs that do not vary with the level of production or sales, remaining constant regardless of business activity levels.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.
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