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In economics, choices must be made because we live in a world of
Operating Income
The profit realized from a business's operations after subtracting operating expenses from gross profit, indicating the efficiency of core business activities.
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.
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