Examlex
Please define the following key terms. Show Who? What? Where? When? Why Important?
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Net Operating Income
The total profit of a company after operating expenses are subtracted from total revenue but before deducting taxes and interest.
Absorption
The process in cost accounting of allocating all manufacturing costs, both fixed and variable, to individual units of production.
Variable Costing
A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, used for internal decision-making processes.
Net Operating Income
The net profit of a company, calculated by deducting operating expenses from the gross profit.
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