Examlex
The molecules drawn below are examples of
Variable Costs
are expenses that change in proportion to the activity of a business, such as raw material costs, which increase with the level of production.
Direct Labor
Factory labor costs that can be easily traced to individual units of product. Also called touch labor.
Contribution Margin
The amount by which sales revenue exceeds variable costs of production, indicating the contribution towards covering fixed costs.
Fixed Costs
These are expenses that do not change with the level of output or sales, such as rent, salaries, and insurance.
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