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Preoperational thought includes language and imagination, but logical, operational thinking is not yet possible at this stage.
Relevant Range
The range of activity within which assumptions made about cost behavior are valid. Beyond this range, fixed and variable cost patterns may change.
Break-even Point
The level of sales or production at which total revenues equal total costs, resulting in neither profit nor loss.
Contribution Margin
The selling price of a product minus the variable cost per unit, used to cover fixed costs and contribute to net profit.
Fixed Costs
Expenses that do not change with the level of production or sales activities within a short time.
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