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The key operating question of moral management is
Contribution Margin
The difference between sales revenue and variable costs, representing the portion of sales that contributes to covering fixed costs.
Production Constraint
A limit to the amount or volume of production, often caused by the availability of resources, technology, or market demand.
Machine Hours
A measure of the amount of time a machine is operated in the production process.
Avoidable Costs
Avoidable Costs are expenses that can be eliminated if a particular decision is made, such as discontinuing a product or service.
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