Examlex
Differentiate.
Variable Costing
An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs, excluding fixed overhead.
Net Operating Income
A financial metric that calculates how much profit a business generates from its regular operational activities, excluding non-operating income and expenses.
Operating Loss
A financial situation indicating a company's expenses have surpassed its revenue from operations, resulting in a negative operating income.
Absorption Costing
A costing approach that incorporates all costs related to manufacturing, including both fixed and variable costs, into the price of a product.
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