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It is an ethical violation to:
Fixed Overhead
Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.
Direct Labour
The workforce directly involved in the manufacturing or production process.
Net Operating Income
Net operating income is the total profit of a business after subtracting operating expenses but before deducting taxes and interest charges.
Target Costing
A pricing method that involves reversing the traditional cost-plus formula to determine allowable costs based on market price and desired profit.
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