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Net Operating Income
The profit generated from a company's normal core business operations, excluding deductions of interest and taxes.
Variable Costing
A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.
Absorption Costing
An accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - in the cost of a product.
Chief Executive Officer
The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.
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