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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.
Mrs. M. Botham is a sole trader, selling a variety of fashionable clothing materials. Her business year end is 31 December 2011. You have been given the following trial balance
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