Examlex
There are limitations to departmentalization by product, including:
Variable Cost
A cost that varies with the level of output or activity, in contrast to fixed costs, which remain constant regardless of activity.
Fixed Costs
Expenses that do not change with changes in the volume of production or sales, such as rent, salaries, and insurance.
Break-Even Point
The point at which total costs and total revenues are equal, resulting in no net loss or gain.
Monthly Profit
The total revenue of a business minus the total expenses for the month, indicating the financial gain.
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