applied cost Definition | Business Dictionaries from AllBusiness.com
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Business Definition for: applied cost
applied cost

one that has been assigned to a product, department, or activity. An applied cost does not have to be based on actual costs incurred. Factory overhead applied to a product is an example of an applied cost. To apply overhead, a predetermined overhead rate is developed; it is based on budgeted overhead and budgeted volume of activity.

See also predetermined overhead rate
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