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If with one unit of labor the U.S. can produce 20 units of computer software and 10 units of computer hardware and China can produce 5 units of software and 5 units of hardware then
Activity-based Costing
A method in accounting that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Activity-based Costing
A costing methodology that assigns overhead and indirect costs to specific activities related to the production of goods or services.
Order Size
The quantity of goods a customer purchases in a single order, which can impact production planning and inventory management.
Activity-based Costing
An accounting method that assigns costs to products or services based on the activities that go into producing them, providing more accurate cost information.
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