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What is the meaning of the term center of gravity?
Variable Costing
An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.
Fixed Manufacturing Overhead
The set costs associated with producing goods that do not change with the level of output, including salaries, rent, and insurance.
Net Operating Income
A financial metric that shows the profitability of a company's core business activities, excluding the effects of financing and investment income.
Segment Margin
The amount of profit or loss generated by a particular segment of a business, after accounting for traceable costs and expenses.
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