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Rationalize the denominator.
Direct Materials
Raw materials that can be directly associated with the production of a product and are included in the final product.
Standard Costs
Predetermined or budgeted costs serving as a benchmark for evaluating actual performance and cost control.
Actual Costs
The actual expenses incurred in producing a product or delivering a service, including all direct labor, materials, and overhead costs.
Currently Attainable Standards
Standards that represent levels of operation that can be attained with reasonable effort.
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