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Categorising Costs by Their Behavior Is One Step in Estimating

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Categorising costs by their behavior is one step in estimating relevant costs for a cost object.


Definitions:

Capital Gains Yield

The change in price of a security over time, expressed as a percentage.

Geometric Average

A method of calculating the average rate of return that considers the compounding effect of returns over time.

Risk-Free Security

An investment that is assumed to be free from any risk of financial loss, typically represented by government bonds.

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