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Labor efficiency variance |
The difference between time spent in producing the actual output and the time that should have been spent multiplied by the standard rate |
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Labor rate variance |
The difference between the rate per hour paid to labor and the standard rate set multiplied by the actual hours worked |
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Last in first out |
The latest materials purchased are used or issued first. The price paid to purchase the latest materials is used to value or price the issue. |
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Ledger |
A book in which accounts are kept |
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Limiting factor |
The factor which limits the activities of a business. Also referred to as principal factor, governing factor, key factor or scarce resource. |
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