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Which of the following does NOT illustrate digestion?
Variable Costing
An accounting methodology that assigns only variable costs to inventory, treating fixed costs as expenses of the period.
Operating Income
Refers to the profit realized from a business's core operating activities, excluding deductions of interest and taxes.
Absorption Costing
Absorption costing is an accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.
Variable Costing
Variable costing is an accounting method that only considers variable costs (costs that change with production levels) in the calculation of product or service costs, excluding fixed costs.
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