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Discuss the difference between increasing returns and economies of scale.
Cost Formula
An equation or model used to predict and allocate costs based on certain variables or cost drivers.
Activity Level
The volume of production or the level of activity in a business that impacts costs and operating income.
Total Cost
The complete cost of producing or acquiring a product or service, including fixed and variable costs.
High-Low Method
An accounting technique used to estimate fixed and variable costs based on the highest and lowest levels of activity.
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