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Define the Following Terms

question 33

Essay

Define the following terms:
a. LIFO liquidation
b. LIFO conformity
c. Lower of cost or market inventory valuation


Definitions:

Variable Maintenance Cost

Costs for maintenance that fluctuate with the level of operation or production activity.

Machine-Hours

A unit of measure representing the operational time of a machine, used as a basis for allocating manufacturing overhead in traditional costing systems.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid.

Gross Margin

A company's net sales revenue minus its cost of goods sold (COGS), expressed as a percentage. It reveals how much profit a company makes before expenses.

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