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A crane manufacturing company that solely manufactures and sells salvage cranes for salvage companies is using which strategy?
Adjusted Cost
The cost of an asset after accounting for adjustments such as depreciation, improvements, or damage.
Estimated Manufacturing Overhead
Projected costs that a company expects to incur for manufacturing overhead, excluding direct labor and materials.
Applied Overhead
The portion of overhead costs allocated to specific products or cost objects based on the predetermined overhead rate.
Actual Manufacturing Overhead
Refers to the actual incurred costs that are indirectly associated with the manufacturing of a product, including costs like utilities and maintenance for manufacturing facilities.
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