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Practical Capacity
The maximum amount of work that can realistically be achieved in a production process, accounting for unavoidable disruptions like maintenance and downtime.
Budgeted Capacity
The amount of production volume planned for a period, which is used for budgeting and planning purposes.
Overhead Costs
General business expenses that are not directly attributable to creating a product or service but are necessary for the business's functioning.
Cost Drivers
Factors that cause the cost of an activity or product to increase or decrease, influencing overall expenses.
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