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Revising a financial plan
Volume Variance
The difference between the expected volume of sales or production and the actual volume, which affects budgeting and operational planning.
Fixed Manufacturing Overhead
Fixed manufacturing overhead refers to the costs associated with production that do not vary with the level of output, such as rent for factory buildings, salaries of certain staff, and equipment depreciation.
Overhead Volume Variance
The difference between the budgeted and actual volume of production, affecting the allocation of fixed overhead costs.
Denominator Level
In cost accounting, it refers to the base level of activity or volume used to calculate fixed costs per unit.
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