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More often,innovation is evolutionary.
Job-Order Costing System
An accounting system used to track the costs associated with producing specific jobs or batches, useful for customized orders.
Predetermined Overhead Rate
A rate used to apply manufacturing overhead to products or job orders, calculated in advance based on estimated costs.
Variable Manufacturing Overhead
These are manufacturing costs that vary in total directly and proportionately with changes in the production volume, such as indirect materials and utilities.
Direct Labor-Hours
The cumulative working hours of employees directly engaged in manufacturing activities.
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