Describe what is happening at places 1,2 and 3 in the diagram.
Definitions:
Estimated Cost
An approximation of the cost to produce goods or services, used for budgeting and planning.
Activity-Based Costing
A costing method that assigns overhead and indirect costs to related products and services based on their usage of the resources.
Materials Handling
The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, and disposal processes.
Estimated Manufacturing Overhead
The forecasted indirect costs associated with the production process, not directly tied to specific units.
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