The costs assigned to units in stock are typically lower under absorption costing than under variable costing

Name: The costs assigned to units in stock are typically lower under absorption costing than under variable costing
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Under absorption costing, fixed manufacturing costs are assigned to units in stock, while under variable costing, only variable manufacturing costs are assigned to units in stock. This results in a lower cost per unit under absorption costing.

The Costs Assigned to Units in Stock Are Typically Lower