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Gross Margin
The difference between sales revenue and the cost of goods sold, usually expressed as a percentage of sales revenue.
Net Operating Income
Income generated from regular business operations, excluding deductions for interest and taxes.
Manufacturing Overhead
All indirect costs associated with the manufacturing process, including costs related to factory equipment maintenance, factory management salaries, and utilities.
Period Cost
Expenses that are not directly tied to the production process and are charged to the period in which they occur, such as selling and administrative expenses.
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