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Variable Costs
Costs that vary in direct proportion to changes in levels of production or sales, such as raw materials and labor expenses.
Variable Costs
Costs that change in proportion to the level of production or sales activity, such as raw materials or direct labor.
Direct Proportion
A relationship between two variables where an increase in one results in a proportional increase in the other.
Activity Level
In accounting and management, refers to the volume of units produced, hours worked, or any other measure of output that drives the costs in a business.
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