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What is the difference between a negotiating party's position and that party's interests?
Predetermined Rate
A rate established in advance to allocate certain costs, often overhead, to products or job orders based on an estimated or expected basis.
Fixed Overhead
Expenses that do not vary with the level of production or sales, such as rent, salaries of permanent staff, and insurance.
Planned Activity
Activities or tasks that have been scheduled and outlined in advance as part of a project or process planning.
Overhead Application
The process of assigning overhead costs to specific products or activity bases using a predetermined overhead rate.
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