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Materials Standards
The set specifications or benchmarks for the quality, quantity, and cost of materials used in manufacturing.
Price Variance
The difference between the actual cost of a product or service and its standard or expected cost, which can indicate issues with budgeting or pricing strategy.
Direct Materials
Raw materials that can be directly traced to the production of a specific product and are a variable cost.
Standard Cost
A predetermined cost of manufacturing a product or performing a service, used as a benchmark for measuring performance.
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