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Functional Fixedness Occurs When

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Functional fixedness occurs when


Definitions:

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are higher than the actual overhead expenses incurred.

Raw Materials

The basic materials from which products are made, which have not yet been processed or used in manufacturing.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies used on machinery.

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