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Variable Expenses
Costs that vary directly with levels of production or sales volume, such as materials and labor.
Fixed Expenses
Recurring costs that do not vary with the volume of production or sales, similar to fixed costs.
Variable Costing
An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
Direct Labour
The labour costs directly attributable to the production of goods or services, including wages for workers who physically manufacture a product.
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