Examlex
When reading the meaning of a term you usually begin with the:
Absorption Costing
A calculation method for product pricing that includes all components of manufacturing costs—direct materials, direct labor, both variable and fixed overheads— into the product's overall cost.
Net Operating Income
The profit generated from a business's operations after subtracting operating expenses but before deducting interest and taxes.
Variable Costing
A pricing approach that incorporates only variable manufacturing expenses into the cost of products, while considering fixed overhead costs as expenses for the period.
Variable Costing
An accounting method that only includes direct variable costs in product costing and decision-making processes.
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