Manufacturing - JDE1 (MOSC)

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B3 Machine Run

Hello,

Can anyone provide me about machine run definition from accounting point of view.

As what I understand:-

1-The Machine Fixed O/H is the machine depreciation C1

2- Machine Variable O/H is the machine operation expenses . C2

and suppose the machine run is equal to C1 + C2 so I am confusing about machine run and also is the cost of product will include machine run?

your clarifications is highly appreciated.

Regards

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