Examlex
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Overapplied
A situation where the overhead applied to products or services exceeds the actual overhead incurred.
Underapplied
Underapplied overhead occurs when the allocated manufacturing overhead costs are less than the actual overhead costs incurred, resulting in a shortfall that needs to be adjusted.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold in a company, including both materials and labor costs.
Job-Order Costing System
A cost accounting system that assigns costs to specific production batches or jobs, commonly used for customized orders.
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