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What is the relationship between pizzas and hamburgers?
Departmental Overhead Rate
The rate used to allocate overhead costs to individual departments based on certain criteria or activities.
Cost Assignment
The process of identifying, aggregating, and assigning costs to cost objects, such as products, services, or departments.
Plantwide Overhead Rate
A single overhead rate calculated by dividing total factory overhead by the total amount of a chosen allocation base, applied uniformly across all production.
Activity-based Costing (ABC)
A costing method that assigns overhead and indirect costs to related products and services based on their usage.
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