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Variable Costs
Costs that vary in direct proportion to changes in production or sales volume, such as materials and labor.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed costs to variable costs.
Variable Costs
Costs that change directly in proportion to changes in the volume of production or activity level, such as raw materials, labor costs directly tied to production, and utility costs for manufacturing facilities.
Fixed Costs
Expenses that do not change in total despite changes in the volume of goods or services produced or sold.
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