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Please discuss the two different types of CFA models outlined by the authors.What are the aims of these specific models, how did they come to be, and what are some of the activities or tenets of each?
Variable Cost
Costs that vary directly with the level of production or sales volume.
External Suppliers
Third-party entities that provide goods or services to a company, but are not part of the company itself.
Annual Capacity
The total output a company can produce in a year using its resources efficiently.
Opportunity Cost
Forgoing the potential gains from various choices by settling on one option.
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