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Structural Dimensions Provide Labels to Distinguish Some Key, Internal Characteristics

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Structural dimensions provide labels to distinguish some key, internal characteristics of an organization.


Definitions:

Direct Labor

The labor cost associated with workers who are directly involved in the production of goods or the provision of services.

Direct Materials

Raw materials that are directly incorporated into the finished product and can be easily traced to it.

Ideal Standards

Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards.

Machine Breakdowns

Unplanned events where machinery or equipment fails to operate, potentially causing disruptions in production and incurred costs for repairs and maintenance.

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