Examlex
_____ occurs when we observe a fact and ask,"Why is this?"
Variable Costing
A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead from product cost calculations.
Net Operating Income
The income generated from normal business operations after deducting operating expenses such as wages and cost of goods sold, excluding income from investments and other non-operational sources.
Variable Costing
An accounting method that only considers variable costs (costs that change with production levels) in product costing and decision-making.
Absorption Costing
A bookkeeping approach that encompasses the total expenses of production, including direct materials, direct labor, along with both variable and fixed overhead costs, into the pricing of a product.
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