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Transfer-pricing systems enable managers to focus on maximizing the performance of their subunits.
Step-down Method
A cost allocation method used in accounting to distribute overhead costs to various departments or products.
Machine Hours
The total number of hours that machinery is operational during a certain period.
Number Of Employees
A count of all individuals working for a company, including both full-time and part-time staff.
Step-down Method
A cost allocation method used in managerial accounting to allocate overhead costs from service departments to producing departments.
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