-In the figure, box A shows what?
Definitions:
Absorption Costing
An accounting practice that includes the total manufacturing costs, which are direct materials, direct labor, and manufacturing overhead (both variable and fixed), in the valuation of a product.
Net Operating Income
A financial metric representing a company's income after operating expenses but before interest and taxes.
Absorption Costing
A bookkeeping approach that incorporates all production expenses—direct materials, direct labor, and both variable and fixed overhead—into the product's cost.
Net Operating Income
The profit generated from normal business operations, excluding extraordinary items and expenses like taxes.
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