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Which of the following occurs as a result of compression?
Fixed Costs
Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums.
Flexible Budget
A budget that adjusts or varies with changes in the volume of activity, providing a more useful tool for performance evaluation.
Variable Costs
Costs that change in proportion to the level of activity or production volume, such as raw materials and direct labor.
Direct Materials
Raw materials that are directly traceable to the manufacturing of a product and are a significant part of its composition.
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