Examlex
Match the term on the left to its corresponding definition on the right.
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Break-Even Point
The point at which total costs equal total revenues, meaning the business is not making a profit or a loss.
Direct Material
Raw materials that can be physically and directly associated with the finished product during the manufacturing process.
Indirect Material
Materials used in the production process but not directly traceable to a finished product, such as lubricants for machinery.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the proportion of fixed versus variable costs a company has.
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