Examlex
Which category of stocks represents the highest level of risk?
Fixed Costs
Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.
Variable Costing
An accounting method in which costs that vary directly with production volume (such as materials and labor) are included in product costs, whereas fixed costs are not.
Absorption Costing
A system of accounting that entails adding all expenses incurred in production, including direct materials, direct labor, and both variable and fixed overheads, into the cost calculation of a product.
Product Cost
The total cost of manufacturing or purchasing a product, including raw materials, labor, and overhead expenses.
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