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Standard Cost Systems
Accounting systems that use standards for each element of manufacturing cost entering into the finished product.
Product Costs
The total of direct materials, direct labor, and manufacturing overhead allotted to a product, representing the cost to produce goods.
Volume Variance
The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.
Normal Capacity
The average level of operational output that a company can sustain with its current resources, over a specific period and under normal conditions.
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