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Activity-Based Costing
A method in accounting that assigns costs to products or services based on the activities required to produce or deliver them.
Overhead Costs
Indirect costs associated with operating a business, such as utilities, rent, and administrative expenses, not directly tied to a specific product or service.
Arbitrary Allocations
The distribution of costs based on criteria that may not precisely reflect the actual consumption or benefit of those costs.
Process Cost Systems
An accounting method used to track production costs for continuous processes or where identical units are mass produced.
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