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What is pigment in paint?
Activity Rate
A ratio used to allocate costs to products or services based on the activities that are required to produce them.
Cost Pool
A grouping of individual costs in accounting, typically by department or service center, from which costs are allocated to products or services based on a relevant allocation base.
Overhead Costs
Expenses associated with the day-to-day running of a business that are not directly linked to the production or selling of goods and services.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product’s cost.
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