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A reduction in accounts receivable uses cash,reducing the firm's net cash balance.
Activity Cost Pool
A way to group all the costs related to a specific activity or process, used in activity-based costing.
Direct Labor Rate
The cost per hour that a company pays for direct labor, typically related to the production of goods.
Direct Materials Cost
The cost of raw materials directly used in the production of a product, easily identifiable and assignable to the product.
Activity-Based Costing System
A costing method that assigns costs to products or services based on the resources they consume and the activities they require.
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