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Pretax Income
The income a company generates before income taxes are deducted, also known as earnings before tax (EBT).
Variable Costing
An accounting method that only allocates variable costs to production, treating fixed costs as period costs that are charged to expense as they are incurred.
Fixed Overhead Costs
Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, and must be paid regardless of the business activity level.
Product Costs
Costs that are directly associated with the production of goods or services.
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