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In the short run, all the overhead costs for an activity vary with the amount of the cost driver for the activity.
i didnt get the meaning what does this mean?Can I suggest that you watch my free lectures on ABC where this is explained 🙂
If, for example, one of the cost drivers is the cost of the workers who set-up the machines, then if they have fewer set-ups to do we will need fewer workers and the total cost of the activity will be lower.
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