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Relating to randomization, which of the following statements is inaccurate?
Absorption Costing
An accounting method that includes all manufacturing costs (direct and indirect) in the cost of a product.
Total Period Cost
The sum of all costs, both fixed and variable, incurred during a specified period of time, excluding product manufacturing costs.
Variable Costing
A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in product cost.
Net Operating Income
A company's revenue minus its direct costs and operating expenses, indicating the profitability from regular operations before interest and taxes.
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