Question: Many costs on a products value chain, such as R&D and product design costs, are considered period costs and are not assigned to units of

Many costs on a product’s value chain, such as R&D and product design costs, are considered period costs and are not assigned to units of product. An absorption-costing system could be expanded to apply such costs to the products. What would be the advantages and disadvantages of doing so? Would this help managers make better decisions?

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