It is important for companies to know what their variable and fixed costs are. It is also important

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It is important for companies to know what their variable
and fixed costs are. It is also important for managementaccountants and
production managers to understand the relationship between activitylevels and
fixed and variable costs. What are some examples of a company’sfixed and
variable costs? Should a company’s activity level decrease, whatwill happen to
total fixed costs? What will happen to total variable costs?

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