An activity base, also known as a cost driver, is a measure or factor that is used to allocate or assign indirect costs to specific cost objects. It represents the factor that causes or influences...
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Cost allocation is the process of assigning or distributing costs to specific cost objects, such as products, services, departments, or projects. It involves dividing the total costs incurred by a...
An activity driver, also known as an activity cost driver or cost driver, is a factor that causes or influences the incurrence of a particular cost within an organization. Activity drivers are used...
Indirect materials are materials or supplies that are not directly incorporated into the final product but are necessary for the overall production or operation of a business. These materials support...
Indirect labor refers to the labor cost incurred in the production process that is not directly involved in the conversion of materials into finished products. It includes the wages and benefits of...
Selling and administrative expenses, also known as selling, general, and administrative expenses (SG&A), refer to the costs incurred by a company in its day-to-day operations that are not...