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What is distributive fairness?
Actual Rate
The actual interest rate or return that is earned or paid on an investment, loan, or other financial product.
Standard Rate
A predetermined or fixed cost rate that is applied uniformly across units, activities, or time for budgeting or billing purposes.
Unfavorable Cost Variance
A variance that occurs when the actual cost exceeds the standard cost.
Favorable Cost Variance
A variance that occurs when the actual cost is less than standard cost.
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