Costs can change from one period to the next, or de viate from expectations, as a result

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Costs can change from one period to the next, or de¬ viate from expectations, as a result of

• variable costs moving with changes in volume.

• inflation or deflation of prices.

• supplier-changed prices

>- in response to changes in demand, due to changes in cost of production.

• purchase volume changes, which affect purchase discounts related to volume. LO.1

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