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It is logical that there would be a high correlation between ratios that are rated to be highly significant and ratios that are included in corporate objectives.
Unit Product Cost
The total cost (including materials, labor, and overhead) divided by the number of units produced.
Absorption Costing
A financial recording technique that incorporates every manufacturing expense, such as direct materials, direct labor, and all overhead costs (variable and fixed), into the product's cost.
Net Operating Income
The profit a company generates from its core business operations, excluding deductions of interest and tax.
Absorption Costing
An approach in accounting that integrates all costs associated with manufacturing, including direct materials, direct labor, and both variable and fixed overhead, into the product’s price.
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