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Identify the two types of joint ventures.
Indirect Expenses
Costs that are not directly tied to a specific product, service, or department and need to be allocated, such as utilities or rent.
Contribution Margin
The amount remaining from sales revenue after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.
Indirect Costs
Expenses not directly tied to a specific product or service, such as overhead, administrative salaries, and utilities.
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenues.
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