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Simplify if
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Direct Expenses
Costs that can be directly tied to the production or sale of specific goods or services, such as raw materials and labor.
Indirect Expenses
Costs that are not directly traceable to a specific cost object, such as manufacturing overhead, and must be allocated accordingly.
Controllable Costs
Expenses that a manager or a business can influence or regulate in the short term, such as supplies, utilities, and wages.
Profit Center
A segment of a business responsible for both its revenue and expenses, allowing for assessment of its profitability.
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