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Material Quantity Variance
The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.
Standard Costing
An accounting method that uses predetermined costs for product costing, performance evaluation, and decision making.
Labour Efficiency Variance
A metric that measures the difference between the actual labor hours used in production and the standard or expected hours, often indicating labor performance.
Variable Overhead
Indirect production costs that fluctuate with the level of production output, such as utilities for the manufacturing plant.
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