An Opportunity Is a Thought, Impression, or Notion

question 26

True/False

An opportunity is a thought, impression, or notion.

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Definitions:

Absorption Costing

A cost accounting methodology that absorbs all production costs, like direct materials, direct labor, and overhead expenses whether variable or fixed, into the final cost of a product.

Variable Costing

A costing method that includes only the variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Unit Product Cost

The total cost (both variable and fixed) to produce a single unit of product.

Contribution Format

A type of income statement that separates variable costs from fixed costs to calculate a company's contribution margin.