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Figure M-4
-A certain force is required to keep a block of wood 1 m beneath the surface of water. The force required to keep it 2 m deep is
Variable Cost
A variable cost is an expense that varies depending on a company's production volume; they rise as production increases and fall as production decreases.
NPV
An alternate expression for Net Present Value, it represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Credit Policy
A set of guidelines a company follows to determine the creditworthiness of its customers and the terms of credit it will offer.
Contingent Demand
Demand for a product or service that depends on the demand for another product or service.
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