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Data from Project Head Start
Manufacturing Margin
The difference between the sales revenue generated by manufactured goods and the cost of producing those goods, indicating profitability.
Variable Costing
A pricing technique that incorporates solely the variable costs of production—such as raw materials, direct labor, and variable overhead expenses—into the per-unit cost of products.
Variable Overhead
Costs that change with the level of production or service activities.
Absorption Costing
A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.
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