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Contribution Margin
The amount remaining from sales revenue after variable costs have been deducted, indicating how much revenue contributes towards covering fixed costs and generating profit.
Contribution Margin
The difference between a company's sales revenue and its variable costs.
Activity-Based Costing
An accounting method that assigns costs to products or services based on the activities and resources that go into their production, aiming for more precise cost allocation.
Total Overhead
Total overhead refers to the sum of all indirect costs that a business incurs to operate but which are not directly tied to a specific product or service.
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