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Evidence to support the "splitters" includes:
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behaviors hold true.
Variable Cost
Costs that vary directly with the level of production or service provision, such as materials, labor, and utilities consumed in the production process.
Total Variable Cost
The sum of all costs that vary directly with the level of production or output, including materials and labor.
Period Costs
Period costs are expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.
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