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Which of the following is TRUE about observation?
Variable Cost
Costs that change in proportion to the level of activity or volume of production, such as materials and labor.
Fixed Cost
Expenses that do not change in relation to production volume, such as rent, salaries, and insurance premiums.
Theory of Constraints
A methodology that focuses on identifying and managing the most significant limiting factor (constraint) that stands in the way of achieving a goal.
Recognizing Constraints
The process of identifying and acknowledging the limitations or restrictions that impact the efficiency and effectiveness of a system, project, or process.
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