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What is the correct sequence of events according to drive reduction theory?
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.
Safety Margin
The difference between the actual sales and the break-even point; it measures the amount by which sales can drop before a business incurs a loss.
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