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Match Each Term with Its Definition

question 28

Multiple Choice

Match each term with its definition.
-Contracting out a specific business function to another company,rather than having your own company manage that specific work


Definitions:

Total Variable Cost

The overall expenses that change in proportion to the level of production or business activity.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing the cost of fixed resources per unit of output.

Total Fixed Costs

Expenses incurred by a business that do not vary with the level of production or sales, including lease payments and salaries of permanent staff.

Total Variable Costs

The sum of all costs that vary with the level of production, including materials and labor.

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