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Period costs



Period costs are those costs that are expensed in the period in which they are incurred. They include all non-manufacturing accounting costs incurred to sell the product, e.g. administration, distribution, warehousing and selling.Variables: All costs expensed in the period in which they are incurred.Calculation: Sum of the period costsMeasured as: ...

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Product costs



Product costs include all those accounting costs incurred to manufacture a product. These type of costs are inventoried and expensed only when the product is sold.Variables: All costs to manufacture a productCalculation: Sum of all costs to manufacture a productMeasured as: Value ($/€), Interpretation of results: Lower is better

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Marginal costs



The part of the total costs that changes (arises) by producing one more unit.Variables: Marginal costsCalculation: Sum of the marginal costsMeasured as: Value ($/€), Interpretation of results: Lower is better

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Number of sales



Number of sold articles during a certain time period.Variables: # sold articles, # returned articlesMeasured as: Amount (pieces, units, etc), Calculation: Sum of (# sold articles - # returned articles)

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Revenue



Number of articles sold at a certein price during a certain time period.Variables: selling price, # sold articles, returned articlesMeasured as: Value ($/€), Calculation: Sum of ((Selling price * # sold articles) - (selling price * returned articles))

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