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Special Orders
Orders that are outside the normal scope of products or services offered by a business, often requiring special pricing, terms, or conditions.
Absorption Costing
An accounting method that includes all of the direct and indirect manufacturing costs in the cost of a product.
Product Cost
The total expenses incurred to create a product, including direct labor, materials, and overhead costs.
Variable Costing
An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold, treating fixed manufacturing costs as period costs.
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