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Which scenario illustrates the concept of instinctive drift?
Fixed Cost
A type of business expense that does not change with the level of production or sales, including costs like rent, salaries, and insurance premiums.
Variable Cost
Costs that fluctuate directly with changes in production or sales volume.
Product Costs
The costs that are directly associated with the manufacturing of products, including direct labor, materials, and manufacturing overhead.
Variable Cost
Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.
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