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Samsung is trying to get his grandson to learn the word "apple." His attempt involves showing his grandson an image of an apple on his smartphone, making sure that his grandson is also looking, and then saying "apple." Samsung's effort to teach his grandson is clearly based on
Period Costs
Expenses that are not directly tied to the production process and are expensed in the period in which they occur, such as selling and administrative expenses.
Contribution Margin
The difference between sales revenue and variable costs of a product or service, indicating how much contributes to covering fixed costs and generating profit.
Direct Manufacturing Cost
Expenses directly tied to the production of goods, including materials and labor costs.
Indirect Manufacturing Costs
Expenses related to the production process that cannot be directly traced to individual products, such as utilities or salaries for management.
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