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Companies seldom build networks to connect distant locations by buying land and laying cable or sending up their own satellites; they usually lease services provided by large telecommunications firms, such as AT&T, Sprint, and Verizon.
Capacity Utilization
Refers to the percentage of total potential output that is actually being produced at a given time, measuring the efficiency with which a company uses its productive capacity.
Manufacturing Overhead
All indirect costs related to the production process, such as utilities for the factory, depreciation of manufacturing equipment, and salaries of the manufacturing personnel.
Variance
Variance is a statistical measure that represents the dispersion or spread of a set of values, specifically showing how much the values differ from the mean of the set.
Fixed Manufacturing Overhead
Costs associated with manufacturing that do not vary with the level of production, such as salaries of supervisors and rent for factory premises.
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