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Explain two reasons why economic forecasting can only be of limited use.
Variable Manufacturing Overhead
Costs that fluctuate with production volume, such as raw materials and direct labor.
Direct Labour Hours
The overall work hours of staff directly engaged in creating products.
Variable Manufacturing Overhead
The portion of variable overhead that is directly associated with the manufacturing process, such as indirect materials or supplies.
Direct Material
Raw materials that are directly traceable and allocable to a finished product.
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