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Units Manufactured
The total number of completed units produced by a manufacturing process during a specific period.
Variable Costing
A costing method in which variable manufacturing costs are included in product costs, while fixed manufacturing costs are treated as period expenses.
Fixed Factory Overhead
Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, insurance, and salaries of certain managers.
Variable Costing
An accounting method in which costs vary in proportion to the volume of output; this includes direct materials, direct labor, and variable manufacturing overhead.
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