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For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor and (2) the expected return as seen by the marginal investor must equal this investor's required return.
Labor-Hour
The unit of measure representing the amount of work performed by an employee in one hour.
Fixed Manufacturing Overhead
Costs that do not vary with the level of production, such as rent, salaries, and insurance, associated with the manufacturing process.
Volume Variance
A measure in managerial accounting identifying the difference between planned and actual production volumes and its impact on the budget.
Unfavorable
Refers to an outcome or condition that is disadvantageous or against the interests of a person or entity.
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