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What is multicausality?
Indirect Labor
Any labor needed to make a product that is not directly traced to the product.
Product Cells
Small, autonomous manufacturing units within a facility focused on producing a specific family of products or components.
Predetermined Factory Overhead Rate
The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the estimated total factory overhead costs by the estimated activity base at the beginning of the fiscal period.
Factory Overhead Costs
Expenses related to running a factory that cannot be directly attributed to specific units produced, such as maintenance and utilities.
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