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Explain the Wobble hypothesis.
Absorption Costing
A method in accounting that adds all the manufacturing-related expenses like direct materials, direct labor, and all types of overhead (both variable and fixed) to the cost of a product.
Net Operating Income
Profit generated from a company's core business operations, excluding costs and income from non-operational activities.
Operating Loss
A situation where a business's total expenses exceed its revenues, not accounting for interest or taxes.
Year 2
Refers to the second year of a company's operation, a project, or a specific timeframe being analyzed.
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