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Blending approaches to treatment
Fixed Production Cost
Fixed production cost refers to the portion of total production costs that does not vary with the level of output, including costs like lease payments for manufacturing facilities.
Variable Selling Expense
Expenses that fluctuate in direct proportion to the number of sales, like sales commissions and freight fees.
Shipping Costs
Expenses associated with the delivery of goods from the manufacturing point to the customer or distribution center.
Variable Manufacturing Cost
Costs that fluctuate with the level of production output, such as raw materials and direct labor.
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