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A client wears a seat belt whenever riding in an automobile. Which of the following best describes the client's behavior?
Absorption Costing
An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.
Unit Product Cost
The calculation of the total cost (including materials, labor, and overhead) to produce a single unit of a product.
Variable Costing
A costing method in which all variable manufacturing costs are included as inventoriable costs, while fixed manufacturing overhead is treated as an expense of the period.
Net Operating Income
A company's operating income after all operating expenses, excluding taxes and interest, have been deducted.
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