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Activity types

Dear all ,

What is the basis to create the activity types .... I know the reasons to create the activity types as set up , machine and labour...

Apart from this somebody using Macine overhead and factory overhaed activity types.. For what requirements are they creating these activity types ....What is the effect of this machine over head and factory over head in the production order costing.......

When we create the new activity types how to fix the prices for these activity types ..Please reply me your valuble inputs.

Best Regards,

Kumar

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