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The Vroom-Jago leader-participation model is designed to:
Fixed Cost
Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.
Activity Level
Pertains to the volume or quantity of work performed or services provided, often related to the operational capacity of a business or project.
Relevant Range
The range of activity or volume over which the assumptions about fixed and variable cost behavior are valid.
Variable Costs
Costs that change in proportion to the level of production or business activity.
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