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A cost-benefit and cost-effectiveness analysis should only be conducted at the beginning of the program.
Variable Costs
Expenses that fluctuate directly with changes in production volume or activity level, such as raw materials and direct labor costs.
Flexible Budgets
Budgets that can adjust or flex for changes in the volume of activity or other relevant factors, allowing for more accurate forecasts and analysis.
Contribution Margin
The selling price per unit minus the variable cost per unit, representing the incremental money generated for each product/unit sold.
Fixed Budget
A budget that is set for a specific period and does not change, regardless of variations in activity levels, sales volume, or other external factors.
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