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Variable Cost
Expenses that change in proportion to the level of goods or services produced, such as raw materials or direct labor costs.
High-Low Method
A technique used in managerial accounting to estimate fixed and variable costs based on the highest and lowest levels of activity.
Electricity
A form of energy resulting from the existence of charged particles, used as a power source.
Variable Component
Denotes a part of a cost or expense that varies directly with the level of activity or output.
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