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Absorption Costing
A financial strategy that absorbs all the manufacturing outlays, encompassing direct materials, workforce costs, alongside both adaptable and unchanging manufacturing overheads, into the cost of a product.
Unit Product Cost
The cost allocated to a single unit of product, encompassing direct materials, direct labor, and allocated overhead costs.
Income Statement
A financial report outlining the revenues, expenses, and profits or losses of a company over a specific period.
Fixed Manufacturing Overhead
Costs associated with production that do not change with the level of output, such as rent for factory facilities or salaries of permanent staff.
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