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Variable Costing
An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.
Absorption Costing
A system of accounting that encompasses the full range of manufacturing costs—direct materials, direct labor, and overheads both variable and fixed, within the cost framework of a product.
Break-even Sales
The amount of revenue required to cover total fixed and variable costs, resulting in a net profit of zero.
Eastern Division
A geographical or operational segment of a larger organization designated to cover the eastern part of a country or area.
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