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Variable Manufacturing Costs
Costs that change in proportion to the level of production or sales volume, including costs such as raw materials, direct labor, and certain utilities directly involved in the manufacturing process.
Flexible Budget
A flexible budget that adapts to variations in activity levels or volumes, promoting precise budgeting and forecasting.
Manufacturing Costs
Expenses directly associated with the production of goods, including labor, materials, and overhead.
Direct Materials
The primary raw inputs used in the manufacture of products, which are directly traceable to the production process.
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