Examlex
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Normal Spoilage
Normal spoilage refers to the expected amount of waste or loss of materials during a production process, considered as a usual and unavoidable cost of doing business.
Unfavorable Variance
A situation where actual costs exceed budgeted or expected costs, often indicating poorer than expected financial performance.
Actual Costs
The real costs incurred for materials, labor, and overhead in producing goods or delivering services, as opposed to estimated costs.
Standard Costs
Estimated pre-determined costs used for budgeting and measuring performance.
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