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In bottom-up processing, the resulting percept is determined by
Fixed Manufacturing Cost
Costs that do not vary with the level of production output, such as rent, property taxes, and salaries of permanent employees.
Relevant Range
The span of activity levels within which the assumptions made about cost behavior and business operations are valid.
Variable Cost
Financial outlays that change directly with changes in production or sales amounts, such as direct labor and raw materials.
Incremental Manufacturing Cost
The additional costs incurred when increasing production by one additional unit.
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