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Relevant Range
The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.
Fixed Costs
Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance.
Cost Behaviour
Cost behavior is the manner in which a cost changes as the related activity level or volume changes, typically classified into fixed, variable, and mixed costs.
Cost Estimation
The process of forecasting the likely costs of a project or production, based on various factors and historical data.
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