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Variable Costing
An accounting method that only considers variable costs (costs that fluctuate with the level of output) in calculating the cost of goods sold and in decision-making.
Closing Inventory
The total value of goods remaining unsold at the end of an accounting period.
Finished Goods
Products that have completed the manufacturing process but have not yet been sold or distributed to end customers.
Standard Costs
Predetermined or budgeted costs for products, services, or operations that serve as benchmarks for measuring performance by comparing them with actual costs.
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