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Describe diversion and deinstitutionalization and why they are important.
Fixed Cost
An expense that does not change with the level of production or sales over a short period.
Sales Commissions
The payment given to sales employees based on the amount of sales they generate, typically a percentage of the sale price.
Sales Volume
The amount of goods or services a company sells over a certain time frame.
Variable Costs
Costs that vary directly with the level of output or production, such as materials and labor directly involved in manufacturing.
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