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When water is released from a dam, potential energy is converted to chemical energy.
Fixed Production Costs
Fixed costs are business expenses that remain constant regardless of the level of production or sales.
Absorption Costing
An accounting method that includes all manufacturing costs, both variable and fixed, in the cost of a product.
Net Operating Income
Earnings generated from a company's regular business operations, excluding deductions for interest and taxes.
Fixed Manufacturing Overhead
Expenses related to the production process that remain constant regardless of the operational output, including equipment depreciation and facility rent.
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