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Differential Cost
The difference in cost between two alternative decisions or changes in output levels.
Direct Cost
Expenses that can be directly traced to producing specific goods or services, such as raw materials and direct labor.
Indirect Cost
Costs not directly traceable to a specific product or project, such as utilities or rent.
Contribution Margin
The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.
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