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If the compensation point is above the thermocline,
Cost of Goods Sold
Direct expenditures involved in the manufacture of products a business sells, such as labor and materials.
Fixed Overhead Variances
The difference between actual fixed overhead costs and the standard or budgeted fixed overhead costs.
Direct Materials
Direct materials are raw materials that are directly incorporated into a finished product and are an essential part of the manufacturing process.
Direct Labor
The labor costs associated with employees who are directly involved in the manufacturing of products or provision of services.
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