Examlex
Imitation by rivals is most challenging when
Underapplied
A situation where the allocated or budgeted costs are less than the actual costs incurred, typically in the context of manufacturing overhead.
Overapplied
A situation where the allocated overhead costs exceed the actual overhead costs incurred.
Overhead
Expenses related to the day-to-day running of a business that are not directly linked to the production of goods or services, such as rent and utilities.
Underapplied
A term used in accounting to describe a situation where the allocated manufacturing overhead is less than the actual overhead incurred.
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