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Variable Cost
Costs that vary directly with the level of production or sales volume, such as materials and direct labor.
Fixed Cost
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums, providing stability in expense planning.
Least-Squares Regression
A statistical technique used to find the line of best fit for a set of data, minimizing the sum of the squares of the differences between the observed and predicted values.
Variable Cost
Costs that vary directly with the level of production output or activity, such as materials and labor directly involved in manufacturing.
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