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You turn on a light and observe cockroaches scurrying to dark hiding places. What have you observed?
Variable Costs
Costs that vary directly with the level of production or sales, such as materials and labor costs.
Fixed Costs
Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.
Variable Costs
Expenses that change in proportion to the activity of a business, such as the cost of raw materials or production volume.
Total Revenue
The amount of money generated from sales of goods or services before any expenses are subtracted.
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