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I can also see that when annual sales go up that the cost per unit of the fixed cost decreases. Also that when annual sales increase so does the variable cost. It is very important for businesses to see costs this way in order to aid them in their decision making process. The information has to be accurate though in order to do that...

The information has to be accurate though in order to do that.

Reference

Horngren, C., Sundem, G., & Stratton, W. (2005). Introduction to Management Accounting (13th Ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall.

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