Examlex
Standard Costing System
A cost accounting method that assigns a fixed cost to inventory and measures variances against actual production costs to manage business expenses.
Labor Efficiency Variance
The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating efficiency in labor usage.
Direct Labor-Hours
Entire duration of work by employees intricately involved in the manufacturing phase.
Machine-Hours
A measure of production output or activity calculated as the total hours that machines are operated over a specific period.
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