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Machine Hour
A unit of measure representing one hour of operating time for a machine, used in allocating manufacturing costs.
Fixed Cost
Operating expenses that do not change in proportion to the level of production or sales activity, such as rent or salaries.
Variable Costs
Expenses that fluctuate in proportion to the activity of a business.
Activity Level
A measure of the volume of production or operations, often influencing costs and revenues in a business.
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