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What are the advantages of monetary targeting?
Variable Costs
Expenses that change in proportion to the activity of a business, such as materials and labor costs.
Relevant Costs
Costs that will be affected by a decision in a particular situation, excluding sunk costs and costs that do not differ between alternatives.
Unprofitable Product Lines
Product categories or items that do not generate a profit and may result in a financial loss for the company.
Variable Overhead
Costs that vary with production volume, such as indirect materials and supplies, which are not directly traceable to a single product unit.
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