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Considering deviance as relational and as an outcome of a process allows us to:
Standard Costing
An accounting method that uses standard costs for cost control and financial reporting.
Variable Manufacturing Overhead
Manufacturing overhead costs that fluctuate with the level of production activity.
Overhead Rate Variance
The difference between the actual overhead costs incurred and the standard overhead costs assigned to production.
Materials Price Variance
The difference between the actual cost of direct materials used in production and the expected (budgeted) cost of those materials.
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