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Costs can have different definitions, based on what kind of use it is required. They can be considered fixed or variable, direct or indirect, sunk costs, incremental or opportunities costs, as described below with the specific definition and example.
Fixed and Variable Costs
Fixed costs are the ones that do not vary with the number of goods produced, that do not change in proportion to the activity of a business within range if productivity, in an accounting period. They are known as the costs that a business must pay regardless of their sales or production levels. These costs do not grow or decrease and must be paid each month or year without exceptions...
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