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Job-Order Costing
A system that assigns manufacturing costs to each product, providing a way to calculate the cost per item or job specifically.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a planned amount of activity.
Machine-Hours
A measure of production output or activity based on the number of hours machines are run, used in allocating machine-related costs to products.
Variable Manufacturing Overhead
Costs in the manufacturing process that fluctuate with the level of production output, such as utilities or materials.