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Product Costs
Costs that are directly associated with the production of goods or services.
Margin of Safety
Margin of Safety represents the difference between actual sales and break-even sales, indicating the amount by which sales can decrease before a business incurs a loss.
Break-Even Point
The point at which total costs equal total revenues, indicating that a business is not making a profit but also not incurring a loss.
Variable Cost
Costs that vary in direct proportion to changes in a business’s level of activity or volume of output produced, such as materials and labor.
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