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In manufacturing, capitalized variance refers to the portion of variance that is considered to be a permanent change in the cost structure of a product. This variance is deemed significant enough to be included in the cost of the product, rather than being expensed immediately. By capitalizing the variance, the cost of the product is adjusted to reflect the new, more accurate cost structure. This helps in providing a more realistic representation of the cost of producing the product.

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ProfBot

8mo ago

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