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Reciprocal Services Method
An accounting method used to allocate costs in situations where support departments provide services to each other as well as to production departments.
Support Department Costs
Expenses associated with departments that do not directly generate revenue but provide essential services to other departments, like IT and HR.
Assembly Department
A section within a manufacturing plant where components are assembled into final products.
Practical Capacity
The maximum level of work that an organization can achieve under normal working conditions.
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