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Net Operating Income
The financial gain a company receives from its essential business operations, prior to the removal of interest and tax costs.
Variable Costing
Variable costing is an accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product.
Net Operating Income
The total profit of a company after all operating expenses are subtracted from total revenues but before deducting taxes and interest.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a unit of a product.
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