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What are some of the benefits of using incentives and bonuses? What are some dangers?
Predetermined Overhead Rate
A rate calculated before a production period begins, used to allocate manufacturing overhead costs to products based on a chosen activity base.
Variable Manufacturing Overhead
Variable manufacturing overhead consists of manufacturing costs that fluctuate with production volume, such as indirect materials and utility costs.
Fixed Manufacturing Overhead
The sum of all consistent, non-variable costs associated with manufacturing, including salaries of supervisors and rent of the facility.
Job-Order Costing System
An accounting method that tracks the costs associated with producing a specific batch of products or a specific job.
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