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Draw the graph of the GG and LL schedules and explain the logic behind the slopes of each of the schedules.
Materials Quantity Variance
The deviation found by multiplying the standard cost per unit with the difference in the actual and expected standard volumes of materials used in the production process.
Materials Price Variance
A financial measure used to determine the variation in the cost of raw materials against the pre-defined standard cost.
Raw Materials Inventory
The stock of basic materials that are to be used in production but have not yet been processed.
Cash Account
An account recording the transactions involving cash inflows and outflows.
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