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It is likely that you will have to estimate the cost of these activities.

Next, you will need to allocate the cost of the activities to the individual products. Estimates and allocations based on logical assumptions are better than precise amounts based on faulty assumptions. If you want to learn more about overhead and activity based costing, we have prepared a short list of books that we have read and found to be very helpful. You can view our listing of recommended books by going to the following page: Recommended Books.

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