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The central method used in a scoring model is to
Activity Level
A measure of the volume of production or operations, often influencing variable costs and capacity planning.
Fixed Manufacturing Overhead
The consistent, non-variable costs incurred during the manufacturing process, not directly tied to production levels.
Volume Variance
The difference between the budgeted and actual volume of production, affecting fixed costs allocation.
Machine-Hours
A unit of measure representing the operation time of a machine, often used in allocating manufacturing costs based on machine usage.
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