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Variable Costing
A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.
Unit Product Cost
The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.
Variable Costing
An accounting method that includes only variable production costs (direct materials, direct labor, and variable overhead) in product cost calculations, excluding fixed manufacturing overhead.
Net Operating Income
Net Operating Income (NOI) is the total pre-tax profit a company generates from its operations, excluding expenses such as interest and taxes.
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