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The ready availability of increasingly powerful software tools created to support RAD decreased interest in this approach.
Net Operating Income
The profit generated from a company's regular business operations, excluding deductions for interest and taxes.
Variable Costing
A costing method where only variable production costs are assigned to inventory and all fixed overhead costs are expensed in the period they are incurred.
Variable Production Costs
Costs that vary directly with the volume of production, including direct labor and materials.
Traceable Fixed Expense
Fixed costs that can be directly linked to a specific segment of the business, and would disappear if the segment did.
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