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Fixed Expenses
Expenses that do not fluctuate with changes in production volume or sales, such as rent and salaries.
Variable Expenses
Costs that change in proportion to the level and nature of business activity, such as advertising, sales commissions, and shipping costs.
Cost Volume Profit Analysis
A managerial accounting technique used to determine the effects of changes in costs and volume on a company's profits.
Unit Contribution Margin
The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs and generating profit.
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