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Traditional Costing Method
A costing system that applies overhead costs to products based on a predetermined overhead rate, without regard to the actual activities that lead to those costs.
Unit Product Cost
The total cost associated with producing a single unit of output, including both variable and fixed costs.
Unit Product Cost
The total cost (direct materials, direct labor, and overhead) associated with producing a single unit of a product.
Traditional Costing Method
A costing methodology that allocates overhead costs based on a single, volume-based cost driver, such as labor hours or machine hours.
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