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Variable Manufacturing Overhead
Costs in the production process that vary with the level of production output, such as utilities for machinery.
Direct Labour
refers to the workforce directly involved in the manufacture of goods or provision of services.
Fixed Manufacturing Overhead
Indirect manufacturing costs that remain relatively constant regardless of the level of production, such as rent, salaries, and insurance.
Contribution Margin
The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.
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