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Describe the four components of a compensation system.
Tax Rate
The income proportion taken as tax from either individuals or corporations.
Variable Cost
Expenses that fluctuate in direct proportion to the volume of production or commercial operations.
Contribution Margin
The amount by which the sale of a product or service exceeds its production cost, used to cover fixed costs and generate profit.
Depreciation Expense
Distributing the expense of a physical asset across its lifespan.
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