Accounting Is Often Referred to as the Language of ________

question 6

Short Answer

Accounting is often referred to as the language of ________.

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Definitions:

Fixed Costs

Constant expenses that a business incurs regardless of production volume, including leases and insurance, essential for financial planning and analysis.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses.

Variable Costing Approach

An accounting method that considers only variable costs as product costs and all fixed costs as period costs, affecting inventory valuation and profitability.

Absorption Cost Approach

A costing method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.