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Absorption costing is when the total cost per each unit of output:

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Absorption costing is when the total cost per each unit of output:

A.

Includes an allocation towards the activity cost of its creation

B.

Includes an allocation towards indirect costs used in its creation

C.

Includes an allocation for a proportion of total production costs

D.

Includes an allocation of producing an additional unit

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TESTED 23 Jan 2026