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Operating Income
This represents the earnings before interest and taxes (EBIT) derived from a company's principal operating activities.
Year 2
Refers to the second year of a specific time frame, project, or financial period.
Variable Costing
A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product, excluding fixed manufacturing overhead.
Unit Product Cost
The total cost (variable and fixed) associated with producing one unit of a product.
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