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Electricity
The cost associated with the consumption of electrical power used in business operations or manufacturing processes.
Absorption Costing
An accounting method where all manufacturing costs, both fixed and variable, are allocated to produced units, making it different from variable or direct costing methods.
Factory Machinery
The collective term for the mechanical, electrical, and computer-based equipment used in a manufacturing or production facility to create products.
Absorption Costing Income Statement
An income statement format that includes all manufacturing costs (both fixed and variable) in the calculation of the cost of goods sold.
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