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As production increases, variable costs increase in direct proportion to the change in volume.
Step costs: costs that vary with activity in steps and may look like and be treated as either variable costs or fixed costs; step costs are not technically fixed costs, but may be treated as such if they remain constant within a relevant range of production
Mixed costs: Costs that include both a fixed and variable component, making it difficult to predict the behavior of a mixed costs as production changes unless the cost is first separated into its fixed and variable components
Regression Analysis: uses statistical methods to fit a cost line (regression line) through a number of data points...
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