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Total Cost Concept
An approach in accounting that considers all costs related to the production of a product, including direct, indirect, fixed, and variable costs.
Rate of Return
The Rate of Return (RoR) is a financial metric used to measure the profitability of an investment, representing the percentage of profit or loss relative to the investment's original cost.
Variable Direct Materials Cost
Refers to the fluctuating cost of raw materials that directly goes into producing a product, changing as the volume of production varies.
Contribution Margin
The amount by which the sale of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.
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