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Fixed Costs
Outlays that do not fluctuate with production or sales figures, such as office rent, salary payments, and insurance policies.
Return On Investment (ROI)
A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its original cost.
Residual Income
The income that remains after subtracting all required expenses, including a minimum target return, from operating income.
Producing Departments
Sections within a manufacturing facility where raw materials are processed or assembled into finished products.
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