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A frozen preference occurs when a manager
Variable Costs
Costs that vary directly with the level of production or output, such as materials and labor.
Fixed Costs
Expenses that do not change in the short term despite variations in production levels or sales volumes, such as rent, salaries, or insurance.
Total Revenue
The overall revenue that originates from a company's core operations, including the sale of its products or services.
Average Fixed Cost
The total fixed costs of production divided by the quantity of output produced, which decreases as production increases.
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