Examlex
What role does the finance function play in product and service design?
Variable Cost per Unit
The cost associated with producing one unit of a product, which varies with the level of production or sales volume.
Annual Fixed Costs
The total fixed costs a company incurs over a year, which do not vary with the level of production or sales.
Return on Investment
A measure of the profitability and efficiency of an investment, calculated by dividing net profits by the cost of the investment.
Residual Income
Profit remaining after deducting all costs, including the cost of capital, usually used in managerial accounting as a performance measure.
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