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Absorption Costing
This financial documentation style accounts for all costs arising from manufacturing activities, encompassing direct materials, direct labor, and all overhead costs, both variable and fixed, in the product cost calculation.
Cost-plus Pricing
A pricing strategy where a fixed percentage or fixed amount is added to the cost of producing a product to determine its selling price.
Markup
The amount added to the cost of a product to cover expenses and generate profit, expressed as a percentage of the product's cost.
Selling and Administrative Expenses
The combined expenses of selling products or services and managing the company, excluding production costs.
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