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Variable Costing
This costing method includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.
Variable Production Costs
Costs that vary directly with the level of production output, such as raw materials andDirect labor.
Product Costs
Costs that are incurred to create a product that includes direct materials, direct labor, and manufacturing overhead.
Segment Margin
The amount of profit or loss generated by a specific division or segment of a company, excluding common costs shared across segments.
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