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Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
The Index of Prohibited Books
Variable Costing
A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.
Chief Executive Officer
The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.
Net Operating Income
A financial metric that calculates a company's profitability by subtracting operating expenses from its total revenue, excluding taxes and interest.
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