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Pre-Tax Net Income
The income earned by a business before the deduction of tax expenses.
Variable Costs
Expenses that change in proportion to the activity of a business, such as the cost of raw materials.
Fixed Costs
Expenses that do not change in total regardless of the level of production or sales activity.
Absorption Costing
A product costing approach that incorporates all costs of manufacturing, including both fixed and variable, into the product's price.
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