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According to four-drive theory, three drives are proactive (i.e. we actively seek to fulfill them), whereas the drive to defend is reactive (activated only in reaction to threat).
Factory Supervision Labor
The labor costs associated with supervising and managing workers in a manufacturing facility.
Equipment Rental
Equipment rental refers to the process of leasing machinery, tools, or other equipment from a third party for a specified period of time, often as an alternative to purchasing them outright.
Predetermined Overhead Rate
A rate estimated before the accounting period begins, used to allocate manufacturing overhead to products or job orders.
Factory Overhead
The indirect manufacturing costs not directly tied to the production of a specific product, such as electricity for the manufacturing plant.
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