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Which of the following best represents the process of photosynthesis?
Absorption Costing
A bookkeeping strategy that encompasses all production expenses, including direct materials, direct labor, and variable plus fixed overhead, into the pricing of a product.
Variable Costing
An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed overhead expenses as period costs.
Variable Costing Income
An accounting method that considers only variable costs—costs that vary with production—when determining cost of goods sold and, ultimately, income.
Fixed Overhead Cost
Indirect fixed costs associated with the production process, such as rent and insurance, that do not vary with the level of output.
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