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Unlike the learning and effectiveness paradigm, the discrimination and fairness paradigm focuses on:
Direct Materials
Raw materials that are directly traceable to the production of a specific product and include in its cost.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a specific activity base.
Budgeted Manufacturing Overhead
The estimated total indirect costs related to the production process, planned for a specific period.
Cost Driver
A factor that causes or relates to a change in the cost of an activity or a product, such as machine-hours, labor-hours, or material usage.
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