Examlex
Give at least three good reasons why a favourable price variance for direct materials might be reported.
Total Costs
Total costs encompass the sum of all expenses incurred in the production of goods or services, including fixed and variable costs.
Average Total Costs
The total cost of production divided by the number of units produced, representing the per-unit production cost.
Marginal Costs
The charge for generating one more unit of a product or service.
Average Fixed Costs
The total fixed costs of production divided by the quantity of output produced, indicating how fixed costs change with different levels of production.
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