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Absorption Costing
A bookkeeping approach encompassing the entirety of production expenses, such as direct materials, direct labor, and both fluctuating and consistent overhead costs, within a product's price.
Production Costs
Expenses associated with the process of producing goods or services.
Short-term Pricing
Pricing strategies focused on immediate objectives rather than long-term goals, such as clearing out inventory or entering a new market.
Absorption Costing
An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.
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