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Direct Labor
The wages of employees directly involved in the production of goods or services, considered a variable cost.
Activity Level
Activity level refers to the volume of production or operations in a business. It is a determinant in both variable costing and activity-based costing, impacting how costs are allocated and managed.
Spending Variance
The difference between the budgeted amount of expenses and the actual amount spent.
Direct Materials
Raw materials that are directly traceable to the production of specific goods or services and are a part of the finished product.
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