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Variable Costing
An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculations.
Unit Product Cost
The total cost associated with producing a single unit of a product, including materials, labor, and overhead.
Common Fixed Expenses
Ongoing expenses that do not vary with production volume or business activity, shared across departments or products.
Business Segments
Distinct parts of a company that can be separately analyzed for profitability and operational efficiency.
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