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Describe causes of the bullwhip effect.
Estimated Labor-Hours
A projection of the total hours of work required to complete a task or project.
Variable Manufacturing Overhead
The indirect, variable costs associated with manufacturing a product, which change in proportion to production volume.
Fixed Manufacturing Overhead
Refers to the regular, consistent expenses incurred in the operation of a manufacturing facility that do not vary with production volume, including salaries of permanent staff, rent, and insurance.
Predetermined Overhead Rate
A predetermined rate for assigning manufacturing overhead to products, calculated at the start of the period using estimated expenses and levels of activity.
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