Why Is Enterprise Architecture Important

question 37

Essay

Why is enterprise architecture important?

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Definitions:

Variable Cost

Expenses that vary directly with the level of production or sales volume, such as materials, labor, and utility costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to fixed expenses and profit.

Selling Price

The amount for which a product is sold, determined by considering costs, market demand, competition, and other factors.

Relevant Range

The range of activity within which assumptions about variable and fixed cost behaviors are valid for management decisions.