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Productivity measures are excluded from inflation calculations.
Predetermined Overhead Rate
A rate calculated before a period begins, used to allocate manufacturing overhead costs to products based on a specific activity base.
Manufacturing Overhead
Indirect costs related to manufacturing, such as utilities, maintenance, and salaries for managers, not directly involved in production.
Variable Manufacturing Overhead
Costs in the production process that vary with the level of output, such as utilities for machinery.
Fixed Manufacturing Overhead
The total of all costs that remain constant regardless of the level of production or sales, in the context of manufacturing operations.
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