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A strategic group consists of businesses adopting the same generic strategy.
Variable Costing
An accounting method that only includes variable production costs (costs that change with the level of output) in product costs.
Direct Labor Cost
The cost of wages and other benefits for workers directly involved in the production process.
Variable Costing
An accounting method that only considers variable costs (costs that change with production volume) in product costing and in the calculation of net income.
Absorption Costing
A method of product costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.
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