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To reduce the problems with political performance appraisals,leaders should:
Activity-based Costing
A method of allocating overhead and indirect costs based on each product's or service's actual consumption of resources.
Cost Pools
A method used in cost accounting to group collected costs, which simplifies allocating costs to different products, services, or departments.
Activity Rates
Predetermined rates used in activity-based costing to allocate costs to products or services based on their consumption of activities.
Direct Labor Hours
The total hours worked by employees directly involved in the manufacturing process or providing services, used in calculating production costs or rates.
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