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What is global sourcing? Explain in brief the primary challenge of global sourcing.
Activity Rates
Rates used in activity-based costing to allocate overhead costs to products or services, based on the amount of activity consumed.
Activity-Based Costing
A technique for determining the true cost of a product by assigning its share of overhead costs based on the specific activities it requires.
Overhead Cost
Indirect costs of running a business that can't be linked to specific products or services but are necessary for the business to operate.
Assembly Hours
The total hours spent on the assembly stage of the manufacturing process, often used in costing and performance measurement.
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