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Define performance standards.
Direct Expense
Costs that can be directly tied to the production or sale of specific goods or services.
Indirect Expense
Costs that are not directly tied to a specific product or service, such as utilities or rent for a company.
Insurance
A financial product that provides protection against losses or damages, in exchange for premium payments.
Departmental Income Statement
An income statement that shows the financial performance of different departments within a company.
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