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Skinner's assessment methods
Spending Variance
The difference between the actual amount spent and the budgeted or standard amount expected to be spent.
Power Cost
The expense associated with the consumption of electrical power used in the operations of a business or manufacturing process.
Materials Quantity Variance
The difference between the actual amount of materials used in production and the standard amount expected to be used, multiplied by the standard cost per unit.
Raw Materials Price
The cost of raw materials required in the manufacturing process, a critical factor in the overall production cost and pricing strategy.
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