Problem on absorption-costing system

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Reference no: EM131821865

Question: Absorption Costing and the Value Chain Many costs on a product's value chain, such as R&D and product design costs, are considered period costs and are not assigned to units of product. An absorption-costing system could be expanded to apply such costs to the products. What would be the advantages and disadvantages of doing so? Would this help managers make better decisions?

Reference no: EM131821865

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