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An economic recession increases demand for products and services.
Net Operating Income
The profit a company makes from its core business operations, excluding deductions of interest and taxes.
Operating Loss
A loss incurred when a company's operating expenses exceed its gross profits or revenues, indicating that the core operations are not profitable.
Absorption Costing
Absorption Costing is an accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.
Unit Product Cost
The total cost (both fixed and variable) associated with a product, divided by the number of units produced.
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