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Variable Costs
Costs that vary directly with the level of production or sales volume, such as materials and direct labor.
Cost Volume Profit Graph
A graphical representation that displays the relationships between a company's costs, revenues, and profits over different levels of production and sales volumes.
CVP Graph
A visual representation of the Cost-Volume-Profit analysis, illustrating the relationships between an organization's costs, sales volume, and profit.
Operating Leverage
The extent to which a company uses fixed costs in its operations, affecting its potential for higher profits or losses with changes in sales volume.
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