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Contribution Margin
is the amount of revenue left after deducting variable costs, which can be used to cover fixed costs and contribute to profits.
Variable Cost Per Unit
The cost that changes with the level of output or sales, calculated on a per-unit basis.
Planning Horizons
The timeframe over which strategic planning and decision-making processes are projected and analyzed, ranging from short to long term.
Relevant Range
The span of activity levels within which certain cost assumptions and behaviors are considered valid and accurate for management decisions.
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