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Segmented Income Statement
An income statement broken down into segments, such as product lines or geographical areas, to analyze profitability.
Absorption Costing
An accounting technique that assigns the total manufacturing costs, including direct materials, direct labor, and both kinds of manufacturing overhead (fixed and variable), to a product’s cost.
Gross Margin
The difference between sales revenue and cost of goods sold, expressed as a percentage of sales revenue, indicating the financial health and profitability of a business.
Absorption Costing
An approach to costing that encompasses all costs associated with manufacturing, including direct materials, direct labor, as well as variable and fixed manufacturing overheads, in the product cost.
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