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Services often require physical distribution activities.
Static Budget
A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.
Fixed Manufacturing Overhead
The set costs involved in producing a product that do not change with the level of production, such as rent, salaries, and utilities.
Master Budget
A comprehensive financial plan comprising various individual budgets covering all facets of an organization's operations.
Machine Hours
A measure of the amount of time a machine is operated, used in manufacturing to allocate costs based on machine usage.
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