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It is much easier for a competitor to implement strategic actions than tactical actions.
Direct Materials
Raw materials that are directly used in the manufacturing of a product and can be easily traced to the finished product.
Direct Labor
The cost of labor that can directly be associated with the production of goods or services.
Overhead
Indirect costs related to production or operations, excluding direct labor and direct materials costs.
Incremental Income
The additional income that is generated by increasing sales or production by one additional unit.
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