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The least complex sales forecasting technique is the:
Contribution Format Income Statement
An income statement format that separates variable and fixed costs, making it easier to see the contribution margin.
Contribution Margin
The revenue remaining after deducting variable costs, which contributes to covering fixed costs and generating profit.
Direct Manufacturing Cost
Expenses directly associated with the production of goods, including direct materials and direct labor costs.
Indirect Manufacturing Cost
Costs related to production that are not directly tied to a specific product, such as maintenance, supervision, and utilities.
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