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What are the disadvantages of trade allowances?
Factory Overhead
Factory overhead refers to the indirect costs associated with manufacturing, such as utilities, maintenance, and salary of supervisory staff.
Factory Overhead Account
Records all the indirect costs associated with the production process, excluding direct materials and direct labor.
Applied Overhead
The allocation of estimated overhead costs to specific production activities or jobs based on a predetermined rate or method.
Incurred
Refers to costs that have been realized or expended in association with a specific activity or period.
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