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Which of the following is the best way of speaking to customers?
Fixed Expenses
Costs that do not change in total with changes in the volume of activity, such as rent, salaries, and insurance premiums.
Variable Expenses
Costs that change in proportion to the level of business activity or production volume.
Fixed Expenses
Fixed expenses are costs that do not change in the short term regardless of the level of production or sales, such as rent, salaries, and insurance premiums.
Margin Of Safety
The excess of budgeted (or actual) dollar sales over the break-even dollar sales.
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