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How does ABC differ from using multiple departmental rates?
Ceramic Tile
A durable, hard flooring material made from clay that has been fired in a kiln, commonly used for floors, walls, and backsplashes.
Fixed Expense
An expense that does not change with the level of production or sales, such as rent, salaries, and insurance.
Administrative Expense
Costs related to the general administration of a business, including office supplies, salaries of administrative personnel, and utilities.
Freight-Out
The cost of shipping goods to customers, which is typically recorded as a selling expense.
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