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Variable Production
Production costs that vary in total directly and proportionately with changes in the production level.
Fixed Production
Production levels set without regard to the varying levels of demand or activity, often resulting in constant output rates.
Machine-Hours
The total duration that machinery is utilized for production activities, expressed in hours, serving as a basis for allocating machine-related costs to products.
Manufacturing Overhead
All indirect costs associated with manufacturing, such as maintenance and repairs on equipment, utilities, and salaries for employees not directly involved in production.
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