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Machine Hours
A metric used in manufacturing to allocate costs based on the number of hours a machine is operated.
Indirect Labor
Labor costs of employees who do not directly work on a product, but whose services are necessary for the manufacturing process.
Factory Utilities
Expenses incurred for the utilities used in the manufacturing plant, such as electricity, gas, and water.
Activity-Based Costing
Activity-based costing is a method of assigning indirect costs to products and services based on the activities they require, aiming for more accurate cost management.
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