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Once it has paid out on the loss, an insurance company can step into the shoes of the insured and pursue a claim against the person who caused the loss.
Departmental Overhead Rate
A rate used to allocate overhead costs to specific departments, calculated based on the relationship between indirect costs and activity level.
Own Allocation Base
Refers to the specific denominator that a company chooses to allocate indirect costs to different cost objects, based on their usage or benefit from those costs.
Plantwide Overhead Rate
A single overhead absorption rate used throughout a manufacturing facility to allocate overhead costs to products.
Volume-Based Measures
Metrics that quantify outcomes or activities based on the amount or volume of production, sales, or other business operations.
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