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Would the CM approach better assist management in ensuring that all costs will be covered?...

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Accounting

Would the CM approach better assist management in ensuring that all costs will be covered? I think that under absorption costing, FC would become inventoriable and thus buried when production exceeds sales. Conversely, under the CM approach, FC are treated as period costs, and thus it is less likely to overstate profits. What are your thoughts on this topic?

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