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Limitations of internal control include
Budgeted Costs
Estimated expenses for a future period, which are prepared for planning and control purposes.
Variable Manufacturing
Costs that vary directly with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.
Fixed Manufacturing
Expenses that do not vary with the level of production or sales, such as rent, salaries, and equipment depreciation.
Static Budget
A budget that does not change or adjust with variations in sales volume or business activity.
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