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Direct Material Price Variance
The difference between the actual cost of direct materials used and the expected (or standard) cost, which can indicate efficiency in purchasing materials.
Standard Costing
A cost accounting method that uses standard costs for direct materials, labor, and overhead to help managers control costs by comparing expected costs to actual costs.
Isolating Variances
A process in managerial accounting for identifying and analyzing differences between actual and expected performance.
Direct Materials
Raw materials directly traceable and assignable to a manufactured product as it is being produced.
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