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Activity-based Costing
A costing method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Overhead Costs
Expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent, utilities, and administration expenses.
Activity Rate
The predetermined overhead rate used in activity-based costing to allocate costs to products or services based on specific activities.
Activity-based Costing
A costing method that assigns costs to products or services based on the activities they require.
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