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When water is released from a dam, potential energy is converted to chemical energy.
Relevant Range
The range of activity within which assumptions about variable and fixed cost behavior are valid.
Cost Behaviour
The way in which a cost changes or reacts in relation to changes in business activity levels.
Variable Selling Expenses
Sales-related costs that vary directly with the volume of sales, such as commissions and shipping charges.
Contribution Approach
An income statement format that organizes costs by their behavior. Costs are separated into variable and fixed categories rather than being separated according to organizational functions.
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