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Define the availability heuristic.
Net Operating Income
The total income from operations of a company before taxes and interest deductions.
Variable Costing
An accounting strategy that only accounts for variable production expenditures (direct materials, direct labor, and variable manufacturing overhead) in product pricing.
Unit Product Cost
The total cost (both direct and indirect) to produce a single unit of product, often used to set selling prices and assess profitability.
Absorption Costing
A method of costing that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a product.
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