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Assumptions are:
Variable Costing
A costing method that includes only variable manufacturing costs in product costs, treating fixed manufacturing overhead as a period expense.
Unit Product Cost
The comprehensive expenditure involved in creating a single product unit, encompassing direct materials, direct labor, and assigned overhead costs.
Absorption Costing
A method in accounting that integrates every manufacturing expense – direct materials, labor, and all overheads (variable and fixed) – into the product’s price.
Net Operating Income
A company's total profit from operational activities, excluding expenses related to interest and taxes.
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