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Operating Loss
A situation where a company's operating expenses exceed its gross profits or revenues.
Year 2
Typically refers to the second year of a business or project, often used in the context of financial or growth performance analysis.
Variable Costing
An accounting technique that involves only variable costs like direct materials, direct labor, and variable manufacturing overhead in the costing of products.
Absorption Costing
A method of accounting that incorporates all costs related to manufacturing—including direct materials, direct labor, and all manufacturing overheads, whether fixed or variable—into the product's cost.
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