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Category: Accounting Basics

link to What is a Mixed Cost?

What is a Mixed Cost?

In business, it is essential to understand the different types of costs incurred. Understanding cost behavior is critical to making informed business decisions. A mixed cost is a type of cost that...

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link to What is a Cost of Production Report?

What is a Cost of Production Report?

A cost of production report is a document used by manufacturers to calculate the cost of producing goods during a specific period. This report is used to determine the cost of goods sold and to...

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link to How to Calculate Multiple Production Department Factory Overhead

How to Calculate Multiple Production Department Factory Overhead

In manufacturing companies with multiple production departments, it is important to allocate factory overhead costs appropriately to each department based on their usage. This is done by using a...

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link to How to Allocate Support Department Costs

How to Allocate Support Department Costs

Support departments play a crucial role in many organizations, as they provide services and resources that are necessary for the core functions of the company to operate smoothly. However, allocating...

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link to What is Process Manufacturing?

What is Process Manufacturing?

In manufacturing, there are two main methods of production: process manufacturing and discrete manufacturing. While both methods produce tangible goods, they are fundamentally different in their...

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link to What is Cost Behavior?

What is Cost Behavior?

Cost behavior refers to how the total cost of a product or service changes as the volume or activity level changes. In other words, it is the study of how costs behave as output or activity levels...

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