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Which of the following is NOT true of public policies and pricing?
Operating Costs
Expenses associated with the day-to-day functions of a business, excluding costs related to production.
Straight-line Depreciation
A technique for distributing the expense of a physical asset evenly over its lifespan in yearly amounts.
Spare Parts
Components kept on hand for the purpose of replacing failed or worn-out parts in order to maintain the functioning of machinery or equipment.
Equivalent Annual Cost
A financial analysis tool used to compare the cost-effectiveness of two or more investment projects with differing lifespans by calculating the annual cost of each project over its life.
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