Examlex
Describe the simple structure. Discuss its advantages and disadvantages.
Standard Costs
Predetermined or budgeted costs for materials, labor, and overhead used for cost control and financial planning.
Materials Quantity Variance
The variance between the real amount of materials consumed in the manufacturing process and the anticipated standard amount.
Direct Materials Purchases Variance
The difference between the actual cost of direct materials purchased and the expected, or budgeted, cost.
Variable Manufacturing Overhead
Costs that fluctuate with production volume, such as indirect materials and utilities for machinery.
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