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absolutely, or diverges.
Direct Manufacturing Cost
Expenses directly related to the production of goods, including labor and materials.
Incremental Manufacturing Cost
The extra expense associated with manufacturing an additional unit of a product.
Contribution Margin
The amount remaining from sales revenue after variable expenses are subtracted, contributing towards covering fixed costs and profit.
Variable Selling Expenses
Costs that fluctuate with the level of sales, such as commissions or shipping fees.
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