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When you look at something, you can detect its color, shape, movement, and depth. Where does all of this information come together?
Break-Even Point in Units
The point at which sales volumes result in no profit or loss, calculated by dividing fixed costs by the contribution margin per unit.
Unit Fixed Cost
The fixed cost associated with manufacturing one unit of a product, which remains constant regardless of the number of units produced.
Unit Variable Cost
The variable cost associated with producing one unit of product, including materials, labor, and other costs that vary with production volume.
Variable Costing
A bookkeeping approach that incorporates solely variable production expenses such as direct materials, direct labor, and variable manufacturing overhead into the costs of products, while omitting fixed overhead.
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