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Intergroup conflict can occur horizontally across departments, vertically between different levels, and between divisions or business units within the organization.
Fixed Cost
Costs that do not change with the level of production or output, remaining constant even as volume changes.
Relevant Range
The range of activity within which the assumptions about fixed and variable costs are valid. Beyond this range, cost behaviors may change.
Per Unit Basis
A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.
Fixed Production Costs
Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.
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