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Glossary Supply Chain / Term

overhead rate

A percentage or fixed-dollar amount that allocates department or product overhead expenses to production on a labor hour, machine hour, labor dollar, material dollar or unit basis. Higher overhead rates indicate the grouping of a greater number of costs or pools on a general basis, and less identification of the direct drivers of those costs. (synonym: burden rate)

Permanent link overhead rate - Creation date 2021-11-03


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