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Plantwide Overhead Rate
A single rate used to allocate all of a plant's manufacturing overhead costs to its production activities based on a uniform cost-driver.
Cost Driver
An element that influences the expense of an operation or procedure to vary, utilized in activity-based costing for more precise cost allocation.
Support Department
An organizational unit that provides essential services, such as human resources or IT support, but does not directly contribute to the production of goods or services.
Direct Costs
Costs that are identified with and traced to a cost object.
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