Examlex
List the three principles of total quality and why they are important.
Absorption Costing
An accounting strategy where the price of manufacturing a product is determined by adding up expenses on direct materials, direct labor, and every overhead cost, be it variable or fixed.
Markup
The extra charge applied to the acquisition cost of items intended to offset operating costs and secure a profit, which defines their market price.
Return On Investment
A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its cost.
Traceable Fixed Expense
Costs that can be directly linked to a specific department, product, or segment of a business and do not change with the level of output or sales.
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