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Through word-of-mouth communication, consumers look to each other for product information and recommendations.
Net Operating Income
The profit a company generates from its regular, core business operations, excluding income from investments and after subtracting operating expenses.
Fixed Manufacturing Overhead
The sum of all the production costs that are not directly linked to the volume of production, such as salaries of managers and depreciation of equipment.
Absorption Costing
A method of costing that includes all manufacturing costs—both fixed and variable—in the cost of a product.
Break-Even
The financial point at which revenues exactly cover all costs, both fixed and variable, representing no profit or loss situation with different wording.
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