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Cost-Volume-Profit Analysis
An accounting method used to determine the effects on company profits of different levels of sales volume and costs.
Fixed Costs
Fixed expenditures that are unaffected by the amount of goods produced or sold, covering rent, salaries, and insurance.
Volume Of Activity
A term often used in cost accounting to denote the amount of production or the level of sales of a company during a specific period.
Total Variable Costs
The sum of all costs that vary with the level of production or sales, such as materials and labor.
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