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What Is the Difference Between Variable-Cost Pricing and Full-Cost Pricing

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What is the difference between variable-cost pricing and full-cost pricing?


Definitions:

Operating-Depreciation Expense

This refers to the portion of depreciation expense that is directly related to the operations of a business.

Generate Future Income

The process or strategy of creating or increasing earnings or revenue streams for a person or entity in subsequent periods.

Net Income

Net Income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Cash Provided

Funds that are generated and made available by a business through its operational activities, investments, or financing.

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