Examlex
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Assembly Department
A section within a manufacturing process where pieces are put together to form a component or a finished product.
Fixed Overhead Rate
A consistent charge that does not fluctuate with the level of output or activity in a given period, used to allocate fixed costs to units of output.
Absorption Costing
An accounting method that includes all manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.
Variable Costing
An accounting method that only includes variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, with fixed overhead expenses recorded as period costs.
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