The Four Levels of Abstraction in the Value Reference Model

question 97

Short Answer

The four levels of abstraction in the value reference model are ________,________,________,and ________.

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products based on the activities they require, such as ordering materials or setting up machinery.

Product Costs

Encompasses all costs incurred to create a product, including direct materials, direct labor, and manufacturing overhead.

Direct Labor

The expenses related to the salaries of workers who are actively engaged in creating products or providing services.

Direct Materials

Raw materials that are directly involved in the production of a product and can be easily traced to it.