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Direct Materials Cost
The cost of raw materials directly used in the production of a product, easily identifiable and assignable to the product.
Activity-Based Costing System
A costing method that assigns costs to products or services based on the resources they consume and the activities they require.
Activity Cost Pools
A grouping of all the costs related to performing a specific activity, used in activity-based costing to allocate costs more precisely.
Overhead Cost Per Unit
The amount of overhead expense allocated to each unit of production.
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