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The authors make a case for:
Cost Center
A function or department within an organization that does not directly add to profit but still incurs costs, such as HR or customer service departments.
Controllable Margin
A measure of profitability that focuses on the income and expenses directly controlled by a manager or business unit, excluding fixed costs.
Fixed Costs
Expenses that do not change with the level of production or sales activities over a relevant period.
Contribution Margin
The difference between sales revenue and variable costs, indicating the amount contributed towards covering fixed costs and generating profit.
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