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Manufacturing Operations The manufacturing department uses marginal costing methods in determining the unit costs of the products. The accounting department prepares the inventory records using a costing method based on materials purchased and disregards
(a) Provide a critique of the accounting policy for inventory included in the financial statements by Mr. Rajah Singh in terms of the financial reporting standards.
(b) Discuss the principal differences between the marginal costing and absorption costing methods of valuing inventory in a manufacturing business.
(c) Discuss the impact of using the marginal costing method of valuing inventory on the financial performance and financial position of the business.
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