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The myelin sheath:
Variable Manufacturing Costs
Costs that change in proportion to the level of production output, such as raw materials and direct labor costs.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overheads - in the cost of a product.
Product Costs
Costs that are involved in acquiring or manufacturing a product, typically including direct materials, direct labor, and manufacturing overhead.
Net Operating Income
The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.
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