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Fixed Cost
Costs that do not vary with the level of output or sales, remaining constant regardless of the business activity level, such as rent and salaries.
Period Cost
Expenditures that are not directly tied to the production process and are expensed in the period in which they are incurred.
Product Cost
The total expense incurred to produce and make ready for sale a product, including direct materials, labor, and overhead costs.
Opportunity Cost
The cost of foregoing the next best alternative when making a decision.
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