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What Is the Cause of a Distribution and Logistical Planning

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What is the cause of a distribution and logistical planning for an organization?

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Definitions:

Unused Capacity

Represents resources or facilities available but not currently being utilized to their full potential in the production process.

Job-Order Costing

A cost accounting system in which costs are assigned to specific jobs or batches, useful in industries where products or services are customized.

Predetermined Overhead Rate

The estimated cost of manufacturing overhead for a specific reporting period, divided by an allocation base, like direct labor hours.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.

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