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The supervisor should deal with honest mistakes made by the employee through:
Activity Level
A measure of the volume or quantity of production or operations in a business, which can significantly impact costs and budgeting.
Variable Costs
Expenses that fluctuate with the level of output or business activity.
Fixed Manufacturing Overhead
The portion of total manufacturing overhead costs that remains constant regardless of the level of production, such as factory rent or salaries of permanent staff.
Direct Materials
Ingredients or substances that are directly linked to the manufacturing of a particular item.
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