Examlex
What is historical analysis?
Activity-based Costing
A costing methodology that assigns production costs to products or services based on the activities and resources that go into their creation.
Traditional Costing System
A traditional costing system allocates indirect costs to products based on a single measure of activity, such as machine hours or direct labor hours, often not capturing the true costs of complex production processes.
Batch-level Costs
Costs associated with a specific batch of products, including setup costs and quality testing, that are not directly related to the manufacturing of individual items within the batch.
Activity-based Costing
An accounting method that assigns costs to products or services based on the activities and resources that go into their production.
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