Examlex
When DFDs are drawn, which of the following conventions should be followed?
Fixed Cost
Describes expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.
Variable Cost
Costs that change in proportion to the good or service that a business produces.
Total Cost
The complete cost of production, including both fixed and variable costs.
Average Variable Cost
The cost per unit of producing goods or services that changes with the level of output, including costs like labor and materials, divided by the quantity of output produced.
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