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While having a discussion, Technician A says that runout can be a result of hub distortion caused when lug nuts are tightened with an impact wrench. Technician B says that it can be caused by dirt or rust on the mating surfaces of the rotor and hub. Who is correct?
Variable Costing
An accounting method that includes only variable costs—costs that change with production levels—in the calculation of unit cost.
Standard Costs
Estimated costs associated with manufacturing a product or providing a service, used for budgeting and performance evaluation.
Absorption Costing
An approach to accounting that incorporates all costs associated with manufacturing, including direct materials, direct labor, and all overhead costs, both variable and fixed, into the price of a product.
Normal Operating Capacity
The level of production that a company can sustain under normal circumstances without overstretching its resources or machinery.
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