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Indirect Manufacturing Costs
Expenses related to the production process that cannot be directly traced to individual products, such as utilities or salaries for management.
Contribution Margin
The amount by which a product's sales revenue exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.
Product Costs
The costs directly connected to the creation of a product, including materials, labor, and manufacturing overhead.
Period Costs
Expenses that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling and administrative costs.
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