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Direct Materials
The primary raw inputs used in the manufacture of products, which are directly traceable to the production process.
Factory Depreciation
The allocation of the cost of a manufacturing or production plant and its equipment over their useful lives, reflecting the usage and wear and tear of fixed assets.
Variable Overhead
Indirect production costs that fluctuate with the level of output, such as utilities or materials.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity level, allowing for more accurate cost control.
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