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What is a bond? Identify and discuss the different types of bonds.
Total Fixed Manufacturing
The summation of all the costs that do not change with the level of production, including salaries, rent, and insurance.
Profit Margin
A component of the rate of return on investment, computed as the ratio of income from operations to sales.
Market Selling Price
The price at which a product is sold to the public, determined by supply, demand, and other market factors.
Target Costing
The target cost is determined by subtracting a desired profit from a market-determined price. The resulting target cost is used to motivate cost improvements in design and manufacture.
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