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When you hear familiar words in your native language,it is virtually impossible not to register the meanings of the words. This best illustrates the importance of
Fixed Costs
These are business expenses that remain the same regardless of the level of production or sales, such as rent or salaries.
Break-Even Point
The level of sales at which total revenues equal total expenses, resulting in neither profit nor loss.
Variable Costs
Expenses that fluctuate in direct proportion to changes in levels of production or sales, such as materials and labor.
Fixed Costs
Expenses that do not change with the level of production or sales volumes, remaining constant regardless of the company's activity levels.
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