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Job applicants who will not accept a job that pays below a certain level are acting according to signaling theory.
Differential Revenue
The difference in revenue expected from two different decisions or alternatives.
Direct Materials
Raw materials that are directly traceable to the production of specific goods or services and are an integral part of the finished product.
Variable Factory Overhead
Variable factory overhead consists of production costs that vary with the level of output, such as utilities and indirect materials.
Fixed Costs
Costs that tend to remain the same in amount, regardless of variations in the level of activity.
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