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Leasehold improvements are depreciated over the remaining life of the lease or the useful life of the improvements, whichever is longer.
Fixed Costs
Costs that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.
Business Plan
A formal document detailing the goals, strategy, market, and financial projections for a business's operations.
Operating Income
The profit realized from a business's core operations, excluding deductions of interest and taxes.
Variable Cost
A cost that changes in proportion to the level of activity or volume of output in a business.
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