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A Price Variance for Direct Materials Measures How Well a Company

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A price variance for direct materials measures how well a company keeps unit prices of material within standards.


Definitions:

Poisson Distribution

A statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.

Automated Car Wash

A facility using machinery and automated processes to clean vehicles without human handwashing.

Poisson Distribution

A statistical distribution that models the number of times an event occurs within a fixed interval of time or space.

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