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What is an advantage of using absorption costing?
A. It permits a business to calculate the break-even point for production.
B. It permits a business to calculate the total cost of goods produced.
C. It permits a business to show a lower value for yearend inventory.
D. It permits decision-making on utilising spare capacity by increasing production.
P1 Given the following data: German Bond U.S. T- Bonds
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#what is the formula for calculating payback period and what are its limitations ?
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We have earlier explained working capital by total current assets less current liabilities. It, in other words, implies that all the assets held through the business along with the
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