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To deal with the problem of factions, James Madison proposed:
Indirect Labor
Labor costs not directly attributable to the production of goods or services, such as salaries for supervisors or maintenance staff.
Direct Labor-Hours
Direct labor-hours refer to the total hours worked by employees directly involved in producing a product.
Spending Variance
The difference between the budgeted amount of spending and the actual amount spent.
Actual Cost
The real, total expenses incurred for a project or production, including all direct and indirect costs.
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