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Fixed Cost
Expenses that do not change with the level of production or sales, such as rent or salaries.
Variable Cost
Expenses that change in proportion to the production level or the amount of output.
Period Cost
Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the accounting period in which it is incurred, such as selling, general, and administrative expenses.
Product Cost
The total cost incurred to create a product, including direct labor, direct materials, and manufacturing overhead.
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