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Relevant Range
The range of activity or production level within which the assumptions of cost behavior hold true for a certain cost function.
Machine-Hours
A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead to products.
Overhead Cost
Expenses related to the operation of a business that are not directly tied to a specific product or service, including rent, utilities, and administrative salaries.
Contribution Margin
The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.
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