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Kevin Tatlonghari
on Nov 13, 2024

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A variable cost remains constant per unit at various levels of activity.

Variable Cost

Expenses that change in proportion to the activity of a business, such as costs for raw materials, packaging, or labor directly associated with product manufacturing.

Activity Levels

The amount of effort or capacity utilized in the operations of a business, which can influence cost and operational efficiency.

  • Familiarize yourself with how changes in activity levels affect variable and fixed financial obligations.
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Aseel QadahNov 15, 2024
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