(Fixed overhead as a product cost) A significant difference between absorption cost¬ ing and variable costing centers around the debate of whether fixed manufac¬ turing overhead is justified as a product cost. Because your professor is scheduled to address a national professional meeting at the same time your class would ordinarily meet, the class has been divided into teams to confront selected issues. Your team’s assignment is to prepare a report arguing both sides of the issue stated above. You are also expected as a team to draw your own conclusion and so state it in your report along with the basis for your conclusion.

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