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Differential Cost
The variance in expenses resulting from choosing between two options or adjustments in production amounts.
Operating Capacity
The maximum output or production level a company can sustain with its current resources, such as machinery and labor, over a specific period.
Unused Capacity
Resources or production potential that remains unutilized or is not being used to its full extent.
Opportunity Cost
The cost of the next best alternative that is foregone when a decision is made to choose one option over others.
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