Examlex
Explain why food tastes different when we have a cold versus when we do not.
Absorption Costing
A method of cost accounting that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.
Variable Costing
A costing method where only variable manufacturing costs are included in the cost of goods sold, with fixed manufacturing overhead treated as a period expense.
Absorption Costing
An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.
Net Income
The total earnings of a company after subtracting all expenses, taxes, and costs, reflecting the actual profitability.
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