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27 January, 09:45

The reporting method that includes in the cost of inventory (and cost of goods sold) all product costs, including both fixed and variable costs is known as:

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  1. 27 January, 12:14
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    The answer is absorption costing.

    Explanation:

    This method is used to indicate that all costs have been absorbed by the units produced, and includes the following costs (fixed and variable):

    1. Direct labor.

    2. Direct materials.

    3. Fixed manufacturing overhead.

    4. Variable manufacturing overhead.
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