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According to communication accommodation theory (CAT) theorists, the main motivation for convergence is:
Common Fixed Expenses
Expenses that remain constant in total amount and are not affected by changes in business activity level, shared across multiple business segments or products.
Business Segments
Parts of a company that can be separately identified by products provided or by geographic markets, allowing for analysis of the different areas of a business.
Variable Costing
An accounting approach that includes only variable production costs - direct materials, direct labor, and variable manufacturing overhead - in product costs, excluding fixed overhead.
Net Operating Income
The profit a company earns from its normal business operations, excluding non-operating income and expenses.
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