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Activity-Based Costing
A costing methodology that assigns costs to products and services based on the resources consumed in the production process.
Manufacturing Overhead
All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for supervisors, not directly tied to a specific product.
Overhead Cost
Expenses related to the ongoing operation of a business that are not directly tied to producing goods or services, such as rent, utilities, and administrative salaries.
Activity Rates
Costs assigned to cost objects based on their use of activities, commonly used in activity-based costing.
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