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Standard Costs
Predetermined costs to manufacture a product or deliver a service, used for budgeting and performance evaluation.
Direct Materials Price Variance
The difference between the actual cost of direct materials used in production and the expected (or standard) cost.
Actual Costs
The genuine expenses that are incurred in the production or acquisition of goods and services.
Standard Costs
Predetermined cost estimates relating to how much it should cost to produce a product or provide a service under normal conditions.
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