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Segmenting Dimensions

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Segmenting dimensions


Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials or direct labor.

General Transfer-Pricing Formula

A method or set of guidelines used to determine the price at which goods and services are transferred between departments or divisions within the same company.

Transfer Price

The cost at which products and services are exchanged among departments within the same corporation.

Annual Capacity

The total amount of output or production a company can achieve in a one-year period under normal conditions.

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