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Variable Costing
An accounting method that only includes variable costs—costs that vary with production levels—when calculating the cost of producing a good or service.
Net Operating Income
The profit generated from a company’s everyday business operations, calculated by subtracting operating expenses from revenue.
Units Produced
The total number of units created by a production process over a specific period of time.
Break Even
The point at which total revenues equal total costs, resulting in neither profit nor loss.
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