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Define nondirectional hypothesis.
Direct Materials Price Variance
The difference between the actual cost and the standard cost of materials used in production, indicating how effectively a company manages its material costs.
Flexible Budget
A budget that adjusts or flexes with changes in volume or activity levels of the organization.
Variable Budget
A financial plan that adjusts for changes in the volume of activity, allowing for flexible cost controls depending on actual performance.
Management by Exception
A management strategy where only significant deviations from set standards are brought to the attention of management.
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