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Because of diminishing returns, a factor in abundant supply has a:
Activity Cost Pool
A collection of all costs associated with a particular activity or process, enabling more accurate allocation of overhead costs to products or services.
Product Design Hour
Product design hour refers to the time spent on the creation and planning of new products, from conceptualization to final design.
Activity-Based Costing
A costing methodology that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Assembly Activity Cost Pool
A grouping of all costs related to the assembly process in activity-based costing, used to allocate costs to products or services.
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