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Cost Pools
Groupings of individual costs typically according to function or department, allowing for more effective overhead cost allocation.
Traditional Costing Systems
Accounting methods that allocate production costs to products based on machine hours, labor hours, or material costs.
Overhead Costs
Expenses not directly tied to production such as rent, utilities, and office supplies.
Underapplied
A situation where the allocated costs in accounting are less than the actual costs incurred.
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