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All of the following statements are true except:
Activity Variance
The difference between budgeted activity levels and actual activity levels.
Fixed Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.
Variable Costs
Expenditures that are directly linked to the production or sales volume, including direct labor and raw materials.
Refurbishing Materials
Materials used in the process of cleaning, repairing, and updating an item to bring it back to a like-new condition, often in electronics and furniture.
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