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Facebook and MySpace are both examples of
Activity-Based Costing
An accounting method that assigns costs to products or services based on the activities and resources that contribute to their creation or delivery.
Direct Labour-Hours
The total hours worked directly on the manufacturing of goods or provision of services, often used as a basis for allocating overhead.
Overapplied Overhead
When the allocated manufacturing overhead cost exceeds the actual overhead incurred, resulting in a surplus in the cost coverage.
Activity Cost Pools
Aggregations of all the costs associated with particular activities, used in activity-based costing.
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