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Activity-Based Costing
A pricing technique that allocates overhead and indirect expenses to corresponding products and services according to the activities they necessitate.
Plantwide Factory Overhead Allocation
Plantwide factory overhead allocation involves spreading all of the indirect costs of operating a manufacturing plant across all products based on a single cost driver.
Plantwide Factory Overhead Rate
This rate calculates the total factory overhead for a plant as a single rate, which is then applied to allocate overhead costs to different products.
Allocation-Base Usage
The process of distributing costs based on predetermined criteria or bases, such as labor hours or machine hours.
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