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Direct Materials Price Variance
The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity purchased.
Actual Costs
The real expenses incurred for goods, services, or other operational activities during a specific period of time.
Standard Costs
The practice of assigning an expected cost to products, with the aim of assessing performance by comparing these costs to actual costs.
Direct Labor Time Variance
The cost associated with the difference between the actual hours and the standard hours of direct labor spent producing a commodity multiplied by the standard direct labor rate per hour.
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