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Materials Price Variance
The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how effectively a company controls its materials costs.
Raw Material Purchase
The process of acquiring the basic materials needed for production of goods.
Fixed Manufacturing Overhead
Fixed manufacturing overhead costs are those production expenses that do not vary with the volume of production, such as salaries of managerial staff and rent of the factory.
Budgeted Fixed Manufacturing Overhead
The predetermined amount of fixed overhead expenses expected to be incurred in the manufacturing process.
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