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Which of the following is a disadvantage of absorption costing method?

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Which of the following is a disadvantage of absorption costing method?

A.

Fixed cost allocated to products on the basis of the cost of activities used in producing them

B.

Variable costs are not taken into product final costs

C.

Using marginal cost of producing addition units

D.

Limited understanding of true costs incurred

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TESTED 20 Oct 2025