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Traceable Fixed Expenses
Fixed costs that can be directly linked to a specific business segment or product line.
Variable Costing
A bookkeeping approach that incorporates only variable production expenses such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.
Net Operating Income
A company's operating income after all operating expenses have been deducted from total revenue.
Variable Costing
A costing method that includes only variable costs - costs that vary with production levels - in the cost of goods sold and excludes fixed costs.
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