Examlex
A reliable measure is one that is honest.
Unit Product Cost
The total cost (both fixed and variable) incurred to produce, store, and sell one unit of a product.
Variable Costing
An accounting method that only considers variable costs for product costing, excluding fixed overheads.
Net Operating Income
Net operating income is the total profit a company generates from its operations, excluding taxes and interest, highlighting operational efficiency.
Absorption Costing
An accounting tactic where the entirety of manufacturing costs—direct materials, direct labor, and manufacturing overhead, both variable and fixed—are included in calculating a product’s cost.
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