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A Cost Estimation Tool Which Is Used to Allocate Money

question 58

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A cost estimation tool which is used to allocate money into an organization's budget is known as a _____ estimate.


Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.

Actual Usage

The real amount of resources consumed or utilized in the production of goods or provision of services.

Standard Material

A benchmark or norm for the quality and type of materials used in the production of goods, aiding in cost control and budgeting.

Service Company

A business that provides services to consumers or other businesses rather than manufacturing goods.

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