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Standard Cost System
An accounting system that uses standard costs for products or services for the purpose of controlling costs and assessing operational performance.
Standard Direct Labor-Hours
The estimated amount of labor hours required to produce a unit of product, used in budgeting and variance analysis.
Denominator Level
The activity level used to compute a predetermined overhead rate, often reflecting capacity or expected usage.
Budget Variance
The difference between budgeted figures for a set period and the actual figures achieved.
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