In activity-based costing (ABC), an activity rate refers to the cost allocated or assigned to an activity per unit of its cost driver. It represents the amount of cost attributed to each unit or...
Category: Managerial Accounting
In activity-based costing (ABC), an activity base, also known as a cost driver, is a factor that causes or influences the consumption of resources and the incurrence of costs for a specific activity....
A work in process controlling account, also known as a work in progress controlling account or WIP controlling account, is an accounting ledger account that serves as a temporary holding account for...
Raw materials inventory refers to the stock of materials, components, or supplies that a company holds in its storage or warehouse before they are used in the production process. Raw materials are...
Finished goods inventory refers to the stock of completed and fully manufactured products that a company holds before they are sold to customers. It represents the final stage of the production...
A predetermined factory overhead rate, also known as a predetermined overhead allocation rate or predetermined overhead rate, is a predetermined or estimated rate used to allocate or apply indirect...