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An example of each term will be given along with the description. At the conclusion of this paper the HR manager will have a clear understanding of the budget decisions being made by the company.
Cost Descriptions
One of the most common terms heard in the business world is fixed cost. Fixed costs do not depend on the amount of sales or the current level of production of a company. A fixed cost does not vary it remains the same every month. “By installing modern, sophisticated equipment, you can virtually eliminate labor in the production of inventory. At high volume, you will do quite well, as most of your costs are fixed...
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