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Activity Drivers
Factors that influence the costs of business activities by measuring the amount of activity that drives costs.
Root Cause
The underlying or fundamental reason for a problem or issue, which, when addressed, prevents recurrence.
Cost Drivers
Activities or factors that cause a change in the cost of a good or service, crucial for budgeting, planning, and cost management.
Normal Costing
An accounting method that assigns costs to products based on direct materials, direct labor, and an allocated portion of manufacturing overhead based on normal activity levels.
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