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The build,operate,transfer option for projects requires the project contractor to take initial ownership of the project in order to make sure it works,thus mitigating risk in the short run.
Predetermined Overhead Rate
A rate calculated before a period begins, based on estimated overhead costs and activity levels, used to allocate overhead to products.
Actual Manufacturing Overhead
The real costs incurred in the manufacturing process that are not directly tied to production, including utilities, maintenance, and factory rent.
Raw Materials
Basic substances in their natural, modified, or semi-processed state used as inputs to a manufacturing process for conversion into finished goods.
Journal Entries
Records of financial transactions in the accounting system, indicating the accounts affected and the debit and credit amounts.
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