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Comparing various process options and their relationship to volume and variety can be accomplished using
Variable Cost
An expense that changes in proportion to the production output or sales of a company.
Activity Variance
The difference between the expected activity level and the actual activity level, often analyzed in budgeting and variance analysis.
Net Operating Income
A company's revenue minus its operating expenses, not including taxes and interest.
Service Company
A business that provides intangible products or services to customers, as opposed to selling physical goods.
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