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Factor.
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Fixed Manufacturing
Costs that do not vary with the volume of production, including rent, salaries of permanent staff, and equipment depreciation.
Average Costs
Calculated by dividing total costs by the total number of units produced, indicating the cost on a per-unit basis.
Produced Units
The number of units of a product that have been completed by a manufacturing process during a specific period.
Relevant Range
The level of activity or volume over which the specific cost assumptions (fixed and variable costs) are valid.
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