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Three ways to achieve coherence are to use
Variable Selling Costs
Costs that vary directly with the volume of units sold, such as commissions and shipping expenses.
Variable Production Costs
Expenditures that change in direct correlation with production volumes, like direct labor and raw materials used.
Absorption Costing
An accounting method that includes all direct costs and overhead costs related to the production of a specific product.
Product Costs
Expenses directly attributable to the creation of a product, including material, labor, and overhead costs.
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