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Net Operating Income
The profit a company makes from its operations, excluding non-operational revenues and expenses like interest and taxes.
Variable Costing
An accounting method that only includes variable production costs—material, labor, and overhead—in product cost calculations, excluding fixed costs.
Fixed Manufacturing Overhead
The sum of all production costs that do not change with the level of output, including salaries, rent, and utility expenses of a manufacturing facility.
Absorption Costing
An accounting method that includes both variable and fixed manufacturing overhead costs in the cost of producing goods.
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