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The tutorial on managerial accounting discusses the concepts of fixed and variable costs. Fixed costs remain constant regardless of cost driver activity, while variable costs fluctuate. In managerial accounting, total costs are divided into these two types. Fixed costs, like those for high-quality gourmet fudge bars from a company named Dave's, do not change with activity levels. Variable costs, on the other hand, are directly impacted by cost driver activities. Understanding these costs is essential for analyzing total and per unit costs in managerial accounting.
