Examlex
This illustration demonstrates the use of
Variable Cost Element
A cost that varies directly with the level of production or sales volume, such as materials and direct labor.
Fixed Cost Element
The portion of total costs that does not change with the variation in activity level or production volume.
CVP Analysis
Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's operating income and net income.
Variable
An element, feature, or factor that is likely to vary or change in ways that can affect the outcome of research or experiments.
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