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Although alcohol is not an essential nutrient,1 gram of alcohol provides:
Direct Materials Price Variance
The difference between the actual cost of direct materials used in production and the standard cost, multiplied by the actual quantity of materials used.
Flexible Budget
A flexible budget adjusts expenses based on changes in actual revenue or other activities, allowing for more accurate budgeting and variance analysis.
Variable Costs
Expenses that vary in direct proportion to changes in activity levels or volumes, such as raw materials and direct labor costs.
Fixed Costs
Costs that remain constant in total regardless of changes in the activity level within a relevant range.
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