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Variable Costing
An accounting method that only considers variable costs (costs that fluctuate with production levels) in the calculation of product cost.
Absorption Costing
A costing approach that encompasses all costs associated with production, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the unit cost of a product.
Ending Inventory
The total value of all unsold goods a company has at the end of an accounting period.
Gross Margin
The difference between sales revenue and the cost of goods sold, indicating the basic profitability of the products or services sold.
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