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Test and learn is a complex,sophisticated approach to experimentation that is usually reserved for established companies.
Relevant Range
The range of activity within which the assumptions made about cost behavior are valid.
Variable Costs
Expenses that change in proportion to the amount of goods produced or the volume of sales.
Fixed Cost
Costs that remain constant in total regardless of changes in the volume of activity or production level.
Cost Per Unit
The average cost to produce one unit of a product, calculated by dividing total production costs by the number of units produced.
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