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Static Budget
A fixed budget that does not change or adjust in response to variations in business activity levels throughout the budget period.
Variable Overhead Costs
Expenses related to the indirect costs of production that vary with the level of output.
Direct Materials Costs
The costs of raw materials that are directly involved in the manufacture of a product and can be directly traced to the product.
Fixed Overhead Costs
Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.
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