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Discuss the risks faced by Goldman Sachs.
Absorption Costing
A costing method where all of the costs associated with manufacturing a product are absorbed by the units produced, including both variable and fixed manufacturing costs.
Operating Income
Earnings before interest and taxes (EBIT), representing the profit a company makes from its core operations.
Capacity
The maximum amount of work that an organization is capable of completing in a given period of time.
Variable Costing
A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
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