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Communication is effective only when:
Fixed Manufacturing Overhead
Indirect costs associated with manufacturing that do not vary with the level of production, such as salaries of managers and depreciation of factory equipment.
Variances
The difference between expected and actual figures in budgeting and financial forecasting.
Direct Labor-Hours
The complete count of hours expended by personnel directly part of the process in making a product or providing a service.
Standard Cost System
An accounting method that uses cost estimates for labor and materials to plan a budget and measure performance.
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