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In 1980, the average CEO in Business Week's survey of CEO's of the largest 500 American companies earned 42 times what the average blue-collar worker earned.
Job-Order Costing System
A cost accounting system that assigns manufacturing costs to a specific product or batches of products, often used in customized production environments.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base, such as direct labor hours.
Variable Manufacturing Overhead
Costs in manufacturing that vary with the level of production output, such as utilities for machinery.
Fixed Manufacturing Overhead
The set of costs associated with the production process that do not change with the level of production, including rent, salaries, and insurance.
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