Examlex
Name and describe the five different categories of small-business owners.
Traditional Costing
A costing methodology that assigns overhead costs to products based on a predetermined rate, often using direct labor hours as the allocation base.
Activity-Based Costing
Activity-Based Costing is a method of allocating overhead to specific products or services based on the activities that contribute to overhead costs.
Overhead Cost
The ongoing, general business expenses not directly tied to producing goods or services but necessary for running the business.
Traditional Costing
A costing method that assigns factory overhead to products based on volume-related measures such as direct labor hours or machine hours.
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