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Marketers are NOT satisfied with an advertisement that gains attention, informs, or persuades.They want only an ad that can produce measurable sales results.
Variable Costing
A costing method that includes only variable production costs (materials, labor, and overhead) in product costs, excluding fixed overhead expenses.
Cost Per Unit
The calculation of the total cost of producing a product or providing a service divided by the number of units produced or serviced.
Finished Goods
Products that have completed the manufacturing process but have not yet been sold or distributed to end users.
Variable Costing
A costing method that includes only variable production costs in the cost of goods sold and reports fixed overhead separately.
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