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Cost-Volume-Profit Analysis
An accounting technique used to determine how changes in costs and sales volume affect a company's operating income and net income.
Absorption Costing
An accounting method that includes all manufacturing costs (direct materials, direct labor, and overhead) in the cost of a product.
Common Fixed Costs
Costs that are shared by multiple segments or products of a company and do not change with the volume of production for any single product.
Absorption Costing
Absorption costing is an accounting method where all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) are included in the cost of a produced unit.
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